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.
Target price: 1.1980
Expiry time: 21:00 GMT