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GBP/USD trading - UK CPI - 16 May 2017

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GBP/USD trading chart 16 May 2017
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GBP/USD continues to trade in the sideways range

Yesterday, the indicators of business activity in the manufacturing sector of New York disappointed. In May the NY State Manufacturing index showed -1.0 against the forecast of 7.2 and 5.2 in April.

Today, we expect the continuation of the GBP/USD sideways movement

Today in the UK, the positive inflation data is expected. The Core CPI is expected to grow from 1.8% y/y to 2.2% y/y for April. The total CPI is projected to increase from 2.3% y/y to 2.6% y/y. The producer price index may add 0.2% per month. The forecast for retail prices is 3.4% y/y against 3.1% y/y earlier. Only the housing prices can show a decline from 5.8% y/y to 5.4% y/y.

The US expects growth in industrial production in the April assessment. The forecast is 0.4% with an increase in capacity utilization from 76.1% to 76.3%. The volume of buildings permits could reach 1.27 million vs. 1.22 million in March.

The situation of the pair GBP/USD looks stable. We are waiting for the continuation of the sideways movement with the attempt to test 1.3000 and the further decline.

How we trade binary?

We would buy Call binary options with 20:00 GMT expiry if a one hour candle closes above the 1.2942 level. If our first target is not reached and the price goes below 1.2910, the first scenario would be invalidated. We would buy Put options if a one hour candle closes below the 1.2910 level.

Asset: GBP/USD
Direction: Call
Target price: 1.2942
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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