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GBP/USD trading - Trump withdrew the initiative - 27 Mar 2017

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GBP/USD trading chart 27 Mar 2017
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The US dollar is weakening

On Friday, a vote in the House of Representatives of the US Congress on the abolition of Obamacare didn’t take place. President D. Trump withdrew the initiative. Now Trump will find it difficult to promote other initiatives because of the connectedness of all planned reforms on the budget.

Friday's US data was good

In February, the volume of durable goods orders showed an increase of 1.7% against the expectations of 1.1%. The basic durable goods orders added 0.4%. The Services PMI declined from 53.8 to 52.9, against the expectations of growth to 53.9. So, the beginning of the week is unsuccessful for the US dollar.

The US dollar has the opportunity to "recoup", but the significant data will be published only on Thursday. We will see the GDP in the final assessment for the 4th quarter - the forecast is 2.0% versus 1.9%.

On Friday, there will be data on personal income/spending (the forecast 0.4%/0.2%). The difficulty for the dollar is that it is weakened throughout the market, denominated in dollars - shares, yields on government bonds, commodities are falling, the precious metals are growing.

How we trade binary?

At this moment we would not buy Call options, as the pair GBP/USD is gradually reaching a large resistance of 1.2551. Just consolidation above this area in the second half of the day will allow bulls to continue the growth of the pair in the area of 1.2612 and 1.2653.

We would buy Call options if a candle opens and closes above the 1.2551 level. This scenario would be invalidated if the pair goes below 1.2520 and fixes, in which case we would go for Put options with the end of the expiry.

Asset: GBP/USD
Direction: Call
Target price: 1.2551
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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