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.
Target price: 1.2800
Expiry time: 20:00 GMT