On Friday, the pair GBP/USD was trading in a narrow range
In the UK the construction output decreased to -0.6% against the expectations of + 0.2%. The trade balance was -9.7 billion pounds vs. the forecast of -11.8 billion and the September figure of -13.8 billion pounds. The US Michigan consumer sentiment grew sharply from 93.8 to 98.0 vs. the forecast of 94.5.
Today, we don’t get significant economic news
Tomorrow it’s worth to pay attention to the British CPI, RPI and PPI. However, these data won’t be enough for any strong movements in front of the Federal Reserve meeting on Wednesday. Will the rate be increased? In our opinion - yes, and it is necessary for the Fed before the financial crisis, which, with high probability, will come next year. And this is the main argument for raising rates.
How to trade binary
On the hourly chart, the pair GBP/USD pair has the key levels: 1.2646, 1.2616, 1.2555, 1.2524. The short-term downward movement is possible in the range of 1.2555 - 1.2524. The short-term upward movement is possible in the range of 1.2616 - 1.2646.
We would buy Call options if the pair GBP/USD rises above 1.2616. This scenario would be invalidated if the pair goes below 1.2555 in which case we go for Put option with the end of the expiry.
Target price: 1.2616
Expiry time: 21:00 GMT