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GBP/USD trading - Mark Carney speech - 27 Jun 2017

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GBP/USD trading chart 26 June 2017
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Yesterday, the strengthening of the US dollar didn't take place

The weak data on durable goods orders slowed down the strengthening of the dollar. In May, the durable goods orders fell by 1.1% against the expectation of decreased by 0.6%. The core durable goods orders increased by 0.1% against the forecast of 0.5%.

British data also didn’t please yesterday

In May, the number of mortgage approvals decreased from 40.7K to 40.3K. After two-week talks with Democratic, Teresa May signed the separate agreement with them. But Northern Ireland didn’t really like it, and on Thursday an agreement on the division of power could be signed.

Today the head of the Bank of England Mark Carney will hold a press conference on the presentation of the report on financial stability. Janet Yellen will speak at the British Academy of London.

The macroeconomic data lost on the background of the speakers, respectively, the direction of the market will be set by them. We assume that today the main idea will be the strengthening of the US dollar. Nevertheless, in the UK the distributive trades survey is expected to increase from 2 to 4 points.

In the US, the index of consumer confidence from the Conference Board is expected to decrease from 117.9 to 116.0 in June. The Richmond Manufacturing Index is expected to grow from 1 to 4.

How we trade binary?

The return of the pair GBP/USD to the level of 1.2754, which wasn’t overcome yesterday, will lead to demand for the British pound and will push the GBP/USD to a new resistance of 1.2801. In the case of an unsuccessful fixing above 1.2754, we recommend postpone purchasing to a more important support level of 1.2708, but also if the false breakdown occurs there.

The Bears will try not to let the pair GBP/USD get above 1.2755, and even update the high of yesterday.

We are looking to purchase Put binary options with 20:00 GMT expiry if a one hour candle closes below the 1.2708 level. If our first target is not reached and the price breaks our resistance level at 1.2754, the first scenario would be invalidated. We would buy Call options if a one hour candle closes above the 1.2754 level. We also buy Call options in the case of false breakdown 1.2708.

Asset: GBP/USD
Target prices: 1.2754 (Call) or 1.2708 (Put)
Expiry time: 20:00 GMT

Comments

Jannik P.'s picture

Target Price: 1.2754
Close Price: 1.2826
Direction: Call
Expiry Time: 20:00 GMT
Result: ITM

Jannik P.

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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