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GBP/USD trading - US building permits - 18 Apr 2017

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GBP/USD trading chart 18 Apr 2017
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Yesterday the market didn’t surprise

The pair GBP/USD has grown slightly in absence of news before something more significant. However, there were signs of strengthening the US dollar. The gold receded from the maximum achieved at the geopolitical risk of a military encounter with the DPRK.

Today, markets can perk up

In the US, the industrial production growth is forecasted at 0.5% in March. The capacity utilization rate can increase from 75.9% to 76.3%. The volume of building permits is expected to increase from 1.216 million to 1.25 million. The volume of housing starts may slightly decrease 1.25 million vs. 1.29 million.

The main reason that can prevent the US dollar strengthening is the debt market. The probability of the June increase has decreased to 50.2% (which is confirmed by our assumption that there is no influence from D. Trump on the monetary policy of the Fed).

How we trade binary

In our view, the price will continue downward if reach 1.2542 level. We would buy Put binary options at that level. If our first target is not reached and the price goes above 1.2588, the first scenario would be invalidated. We would buy Call options if a one hour candle opens and closes above the 1.2588 level.

Asset: GBP/USD
Direction: Put
Target price: 1.2542
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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