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GBP/USD Trading - unexpected the US election result - 10 Nov 2016

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GBP/USD chart 10 Nov 2016
5/5 of 5 ratings

Today, we are waiting for the strengthening of the US dollar.

As you know, Donald Trump won the US presidential election. Rather Trump will continue to promote projects of Trans-Pacific and Trans-Atlantic trade partnerships as it could make Hillary Clinton. Donald Trump is more close to the US manufacturers and will be able to give them the necessary orders.

The first reaction of the US election result was exciting.

During the Asian session, equity markets and the dollar experienced a crash. However, with the opening of European markets the markets turned, and the American investors understanding the benefits of "Trump policy", continued to buy up stocks and the dollar.

The Government bond yields went up on the strengthening of the opinion that the Fed will raise rates in December. Especially Trump promised to deal with this issue. Donald Trump is more close to the US manufacturers and will be able to give them the necessary orders. At the same time, Trump has promised to reduce taxes, curtail the wasteful budget of the health insurance, encourage the transfer of production to the United States and moderate expansion of China's trade.

Yesterday the Federal Reserve Bank of Atlanta's forecast for GDP in the 4th quarter was 3.1%. Today James Bullard will have the speech about US economic prospects.

How to trade binary

The short-term downward movement is possible in the range of 1.2375 - 1.2335, hence the high probability of turning up. The break of 1.2335 level will have to develop a downward structure. The short-term upward movement is possible in the range of 1.2447 - 1.2489, the breakout of the upper limit will have to develop an upward trend.

We would buy Call options if the pair GBP/USD rises above 1.2447. We would buy Put options if the pair falls below 1.2375.

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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