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GBP/USD trading - Janet Yellen speech - 13 Feb 2017

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GBP/USD trading chart 13 Feb 2017
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On Friday, the US dollar attempts to strengthen were unsuccessful

In the UK, all the indicators went better than expected. The trade balance showed -10.9 billion vs. the forecast of -11.5 billion pounds. The industrial production increased by 1.1% vs. -0.2%, the manufacturing industry added even 2.1% against the expectations of 0.5%. The construction increased by 1.8% against the forecast of 1.1%.

On Friday, the US data was weaker than expected

In January the US federal budget balance amounted to 51.0 billion dollars against the forecast of 40.0 billion. Michigan consumer sentiment fell from 98.5 to 95.7.

Today, the important data are not published.

Tomorrow the UK will publish the inflation data. Janet Yellen will speak to Congress on the semi-annual report on monetary policy. The Fed may show a tough policy and show the plans to raise rates in March.

How to trade binary

We buy Call options if the pair GBP/USD rises above 1.2520 and fix there, otherwise, the scenario will remain downward. The fixing above 1.2520 will give a good impetus to move to the upper border of the channel 1.2567. In the case of reduction, we would buy Put options from the level of 1.2457.

We would buy CALL options if the price goes above 1.2520. This scenario would be invalidated if the pair goes below 1.2457, in which case we would go for PUT option with the end of the expiry.

Asset: GBP/USD

Direction: CALL

Target price: 1.2520
Expiry time: 21:00 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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