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GBP/USD Trading - Janet Yellen speech - 20 Dec 2016

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GBP/USD chart 20 Dec 2016
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Yesterday the pair GBP/USD declined despite the weak US data

The Composite PMI from Markit decreased from 54.9 to 53.7. The services PMI showed 53.4 against the forecast of 55.2 and the previous 54.6. The yields on the US government bonds fell slightly, but the increased demand for the bonds maintains a high demand for the US dollars.

Today, the US and Britain won’t publish important news

Yesterday the Fed chief Janet Yellen delivered a speech on "labor market status", she said, that the increase in the number of jobs was the best in the last ten years. This speech helped the US dollar to strengthen.

In the UK, the uncertainty regarding the Brexit increases. Scotland has announced that it will launch any mechanism, even the second referendum to stay in the European Union. This factor of instability does not give the confidence for the Cable.

How to trade binary

We continue to follow the downward structure from 6 December. The continuation of downward movement is possible after the breakdown of 1.2360, in this case, the target - 1.2301. The range of 1.2492 - 1.2524 is a key support for the descending structure, its passage will cause the rising structure development, in this case, the target - 1.2584.

We would buy Put options if the pair GBP/USD falls below 1.2360. T his scenario would be invalidated if the pair goes above 1.2495, in which case we would go for Call option with the end of the expiry.

Asset: GBP/USD
Direction: Put
Target price: 1.2360
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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