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GBP/USD Trading - UK GDP - 26 Jan 2017

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GBP/USD trading chart 27 Jan 2017
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The British pound continues to strengthen against the US dollar

In the UK the CBI trend orders showed 5 vs. the forecast of 2 and 0 in December. In the US, the house price index increased by 0.5%. The US crude oil inventories rose, but the oil has not declined, due to weakening US dollar.

Politics is becoming more important mover in the market

Today, the English Parliament goes to vote the law on the early release of Great Britain from the block. The UK's GDP for the 4th quarter in the 1st assessment is forecasted at 0.5% vs. 0.6% in the 3rd quarter. The balance of the CBI retail sales is expected to decline from 35 to 22. BBA mortgage approvals can show, the December forecast is 41.1K against 40.7K in November.

The US goods trade balance is expected at -64.5 billion against -65.3 billion in November. The wholesale inventories may show an increase of 0.9%. The services PMI is expected to increase from 53.9 to 54.4 in January. The new home sales are expected at 588K vs. 592K.

Trump announced the list of 50 major infrastructure projects in the amount of 137.5 billion dollars and has resumed the construction of the fence with Mexico. Dow Jones stock index set a historical record 20,080 yesterday.

How to trade binary

The short-term downward movement is possible in the range of 1.2578 - 1.2518, the breakdown of the lower limit will result in a deep correction. We would buy Put if the price goes below 1.2575. This scenario would be invalidated if the pair goes above 1.2680, in which case we would go for Call option with the end of the expiry.

Asset: GBP/USD

Direction: Put

Target price: 1.2575
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.

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