The pair GBP/USD started the week with growth.
Being on the important support level, the pair GBP/USD may not go down till the Fed rate decision. Data on the US federal budget for November exceeded the expectations. The deficit exceeded the forecast: -137 billion dollars compared to -135billion.
Today's data from China showed a growth that keeps the US dollar from strengthening.
In November, the industrial production has increased from 6.1% y/y to 6.2% y/y. The retail sales increased from 10.0% y/y to 10.8% y/y (the forecast 10.2%). The fixed asset investment remained unchanged 8.3% y/y.
In the UK, the consumer price index is projected to rise from 0.9% to 1.1%. The core CPI is expected to increase from 1.2% to 1.3%. The retail prices are expected to rise by 2.1%. The house price index may show a decline from 7.7% to 7.3% in October.
The US is to publish NFIB small business optimism index, which is forecasted to increase from 94.6 to 96.7.
How to trade binary
The upward movement is possible in the range of 1.2690 - 1.2717. We expect a continuation of the downward movement after the breakdown of 1.2658, in this case, the target - 1.2610. We would buy Call options if the pair GBP/USD goes above 1.2690. This scenario would be invalidated if the pair goes below 1.2658, in which case we go for Put option with the end of the expiry.
Target price: 1.2690
Expiry time: 21:00 GMT