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GBP/USD Trading - UK Manufacturing Production - 7 Dec 2016

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GBP/USD chart 7 Dec 2016
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Yesterday, the British pound lost 51 points.

In the US, the volume of factory orders increased by 2.7% in October. The indicator confirms the trend of industrial production growth. The US Trade Balance was slightly worse than the forecast: -42.6 billion vs. the forecast of -41.80 billion.

Today we expect a quiet day.

The UK will present data on Halifax House Price Index (forecast 0.2% in November). The Industrial production growth is expected at 0.2% in October, the manufacturing production is expected to grow by 0.2%. In the evening the NIESR will publish the forecast for GDP.

Next week, the Fed with almost 100% probability will increase the rate. Today, however, the United States will present the secondary data.

How to trade binary

On the hourly chart, the pair GBP/USD has the key levels: 1.2631, 1.2593, 1.2561. The continuation of upward movement is possible after the return to the mark of 1.2730. The short-term downward movement is possible after the breakdown of 1.2630, in this case, the target - 1.2593. We would buy Put options if the pair falls below 1.2630. This scenario would be invalidated if the pair goes above 1.2695 in which case we go for Call option with the end of the expiry.

Asset: GBP/USD
Direction: Put
Target price: 1.2630
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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