Yesterday the main event - the decision of the Supreme Court of Great Britain
Yesterday the Supreme Court of the United Kingdom has banned the prime minister start Brexit process without the approval of Parliament. Also, Theresa May announced the making of this issue in Parliament a week before the session of the court. As a result, the reaction of the Cable was moderate.
The fundamental data were mixed
In the UK, public sector net borrowing declined from 10.83 billion pounds to 6.42 billion. In the US the Manufacturing PMI showed 55.1 in January against 54.3 in December. Richmond manufacturing index rose from 8 to 12. The existing home sales amounted to 5.49K in December against 5.65K in November.
Donald Trump continues to operate in the industrial sector. Yesterday, he signed a decree on the resumption of the construction of the Keystone XL pipeline (Canada-US), which was the stumbling block between the Senate, environmental organizations and Obama. Trump also had a meeting with the big three US automakers (General Motors, Ford, Fiat Chrysler), inspiring them to manufacture in the United States.
Despite the decline in volumes produced by OPEC countries, in the US, these volumes are growing, and today we get crude oil inventories data, the forecast assumes an increase of 1.5 million.
In the UK the CBI Industrial Trends orders may increase from 0 to 2.
How to trade binary
The potential of the pair GBP/USD is limited due to the overbought pound. Thus, under the most favorable events, the pair will consolidate in the area of 1.2550. Otherwise, the pair will decline to 1.2430.
We would buy Call options after price fixing above 1.2550 with confirming of the "bull" interest. This scenario would be invalidated if the pair goes below 1.2460, in which case we would go for Put option with the end of the expiry.
Target price: 1.2550
Expiry time: 21:00 GMT