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GBP/USD Trading – Non-farm payrolls – 05 Aug 2016

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GBP/USD Trading – Non-farm payrolls – 05 Aug 2016
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The Bank of England lowered the rate to 0.25%, and the forecasts.

The Bank of England has lowered the forecast for next year from 2.3% to 0.8%, for 2018 from 2.3% to 1.8%. Investors weren’t able to go against this monetary pressure, and the pound collapsed by 217 points.

In the US, the volume of factory orders showed a decrease of 1.5% in June. The reduction is appreciable enough despite the worse prognosis -1.8%.

On Friday, the key event will be the publication of the US labor market data.

The Non-farm payrolls data is projected at 180K in July after 287K in June. The unemployment rate is expected to decline to 4.8% from the current 4.9%. The average hourly earnings are expected at 0.2%, which can significantly strengthen the US dollar.

We believe that the key yesterday event was the point of reversal, and expect the pound at the 1.2950 area in the near future.

How to trade binary

The short-term upward movement is possible in the range of 1.3161 - 1.3213. The correctional downward movement is expected in the range of 1.3060 - 1.2998. We would buy call options if the pair rises above 1.3161. We would buy put options if the pair falls below 1.3060.

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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