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GBP/USD trading - UK Manufacturing production - 10 Feb 2017

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GBP/USD trading chart 10 Feb 2017
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Yesterday, the US dollar showed a strengthening after Trump statements

Donald Trump announced the beginning of disclosure of "phenomenal tax plan" details, which will be released in a few weeks. Probably, investors interpreted these words as a real relationship of Trump to a strong dollar policy.

The US also published positive data yesterday

The number of jobless claims amounted to 234K vs. the previous 246K. Later, James Bullard (St. Louis Fed) said about one rate increase this year that confused the markets.

Today the UK is to publish data on the industrial production, the forecast is 0.2%. The manufacturing production is expected at 0.5%. In December, the trade balance is expected at -11.5 billion pounds against -12.16 billion pounds in November.

In the preliminary estimate, the US Michigan consumer confidence is expected to decline from 98.5 to 97.9 in February. The federal budget is expected to show +40.0 billion dollars compared to -28.0 billion in December.

James Bullard made the confusion yesterday. However, the conditions for the further strengthening of the US dollar persist in the short term. Today, the movement of the pair GBP/USD will depend on fundamental data.

How we trade binary

The level 1.2515 is a strong resistance for the pair GBP/USD. Only the successful fixing above this level will return the pair GBP/USD to 1.2540 and 1.2570 area. The strong support level is 1.2478. We would buy CALL options if the price goes above 1.2522. This scenario would be invalidated if the pair goes below 1.2478, in which case we would go for PUT option with the end of the expiry.

Asset: GBP/USD

Direction: CALL

Target price: 1.2522
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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