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GBP/USD Trading - ISM Non-Manufacturing PMI - 03 Aug 2016

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GBP/USD Trading - ISM Non-Manufacturing PMI - 03 Aug 2016
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The Cable added 180 points yesterday.

The US data on personal spending/income were ignored. The personal spending rose by 0.4% while waiting for 0.3%, the personal income increased by 0.2% while waiting for 0.3%.

The market expects the BoE cut rates from 0.50% to 0.25% and start the asset purchase program on 75 billion.

If one of these components is missing in the final decision of BoE, the Cable may continue to grow.

Today the British Services PMI is expected unchanged, the forecast 47.4. In the US, the national ISM Non-Manufacturing PMI is forecasted 56.0 points for July against 56.5 in June. The ADP non-farm employment change is expected 170-171K in July against 172K in the previous month, which immediately draws attention to Friday's forecasts for NFP.

How to trade binary

We would buy put options if the pair GBP/USD falls below 1.3290. There is a possibility that the pair will reach 1.3290 and bounce above 1.3310. In this case, we would buy call options.

Expiry time: 20:00 GMT

Disclaimer: The article is written for informative purposes only and it is not financial advice. The author does not have any position in the currency pairs mentioned, and no plans to initiate a position. He wrote the article himself and expressed his own opinions. He has no business nor personal relationships with any mentioned government entities or stocks. Readers should not treat any opinion expressed by the author as a specific inducement to make a particular trade or follow a particular strategy, but only as an expression of his opinion.

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