Sorry, you need to enable JavaScript to visit this website.

GBP/USD Trading - Theresa May speech - 17 Jan 2017

You are here

GBP/USD chart 17 Jan 2017
5/5 of 5 ratings

The first day of the trading week with a closed US market was calm

Yesterday, the main news of the day was the refutation of the previous information that the Brexit assumes to be hard. The Cable corrected by 46 points.

Today, the UK Prime Minister Theresa May will have a speech on Brexit

Yesterday the Sunday Times and The Telegraph confirmed that the expected 12 theses from Theresa May aren’t so hard. The Prime Minister will try to avoid the terminology of "soft" or "hard". In our opinion, it will mean one thing - the Brexit has started and the British pound will weaken.

Today, the UK is also to publish data on consumer price index, which is expected to grow from 1.2% y/y to 1.4% y/y. The Core CPI is projected to rise to 1.5%. The retail prices are expected to grow from 2.2% y/y to 2.3% y/y. The House Price index is expected to decline from 6.9% to 6.3%.
The US is to publish the NY Empire State Manufacturing index. The January forecast is 8.1 against 9.0 in December.

How to trade binary

The continuation of downward movement is possible after the breakdown of 1.1980, in this case, the target - 1.1905. The short-term upward movement is possible in the range of 1.2087-1.2135, the breakout of the upper limit will lead to a deep correction.

We would buy Put options if the pair GBP/USD falls below 1.1980. This scenario would be invalidated if the pair goes above 1.2135, in which case we would go for Call option with the end of the expiry.

Asset: GBP/USD

Direction: Put

Target price: 1.1980
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.

You may also read