On Wednesday, the Cable fell back a little from the new highs.
The absence of new important news which can stop the speculative growth of the cable, and send the British pound to the new highs in the near future.
It is worth to pay attention to the yesterday's fundamental data.
The claimant count change showed a decrease by 10.1K against the forecast of an increase by 4.6K. The unemployment rate remained at 4.8%. The average earnings index + bonus increased by 2.8% against the expectations of 2.6%.
In the US, industrial production increased by 0.8% against the forecast of 0.6% and the previous -0.7%. The capacity utilization rate showed 75.5% vs. 75.4%, which retains the ability for further growth. The core CPI gained 0.2% in December.
The total CPI increased by 0.3%. As we said earlier, the increase in inflation indices, regardless of their objectivity, may be a sign of an early rate hike. Obviously, the recent statement William Dudley about the threefold increase in rates has more substantial base than it was last year.
Today, the US will present data on the volume of housing starts in December. The indicator is expected to increase to 1.20 million against 1.09 million in November. The volume of building permits could reach 1.225 million against 1.212 million in November. Philadelphia Fed Manufacturing Index may show a decline from 21.5 to 15.8.
How to trade binary
During today's Asian session the British pound traded sideways against the US dollar. Today, the buyers will try to overcome the intermediate resistance of 1.2310, the breakthrough will lead to a larger rise in the 1.2346 area. The sellers will try to continue its downward correction. The first target is 1.2248.
We would buy Put options if the pair GBP/USD falls below 1.2248. This scenario would be invalidated if the pair goes above 1.2310, in which case we would go for Call option with the end of the expiry.
Target price: 1.2248
Expiry time: 21:00 GMT