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GBP/USD trading - UK manufacturing PMI - 3 Apr 2017

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GBP/USD trading chart 3 Apr 2017
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Investors convinced that US dollar purchases were the right decision at the beginning of the week

In the US, the personal income increased by 0.4% in February, the personal expenses increased by 0.1%. The Michigan 5-Year Inflation Expectations increased from 2.2% to 2.4%. The Michigan Consumer sentiment showed a decrease from 97.6 to 96.9 in March.

The British pound was able to consolidate due to positive data

The Cable added 80 points due to the balance of payments for the 4th quarter, which reduced the negative balance from -25.7 billion pounds to -12.1 billion pounds against the expectations of -16.0 billion. For the same period the business investments amounted to -0, 9% against the forecast of -1.0%. At the moment the main problem of the “Brexit” process is the negotiation with the EU and some individual trading partnerships between the EU and the UK.

Today, the UK will publish data on the index of business activity in the manufacturing sector for March - the forecast is 55.1 versus 54.6 in February. In the US, the ISM Manufacturing PMI may fall - the forecast is 57.2 against 57.7 earlier.

How we trade binary?

We would buy Put options if the price goes below the 1.2500 level. This scenario would be invalidated if the pair goes above 1.2570, in which case we would go for Call options with the end of the expiry.

Asset: GBP/USD
Direction: Put
Target price: 1.2500
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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