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GBP/USD trading - UK prime-minister statement - 19 Apr 2017

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GBP/USD trading chart 19 Apr 2017
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Yesterday's statement by Theresa May mixed the market

The pair GBP/USD rose by 276 points. The Prime Minister of Great Britain stated about the necessary for early elections to the parliament on June 8, which was to be held in 2020. The decision on early elections was taken at a cabinet meeting to ensure a conflict-free Brexit process.

Theresa May's statement divided the market

However, we don’t share the optimism of investors. First, the fact of re-elections is already talking about the crisis of power; secondly, the conservatives want "hard Brexit", which is not favorable for the British pound, and thirdly, re-elections will only prolong the process of negotiations.

Yesterday, the US economic data were good. In March, the industrial production grew by 0.5%. The capacity utilization rate increased from 75.7% to 76.1% (the forecast was slightly higher - 76.2%). The volume of building permits showed 1.260 million versus the forecast of 1.250 million, but the number of housing starts decreased from 1.303 to 1.215 million.

Today, the economic calendar is almost empty. In the evening the Beige Book (Beige Book) will be published - a report on economic districts.

How we trade binary?

In our view, the price will continue downward if reach 1.2800 level. We would buy Put binary options if a one hour candle opens and closes below the 1.2800 level. If our first target is not reached and the price goes above 1.2890, the first scenario would be invalidated. We would buy Call options if a one hour candle opens and closes above the 1.2890 level.

Asset: GBP/USD
Direction: Put
Target price: 1.2800
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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