Yesterday the British pound didn't use the potential for active growth
The Cable had a real reason for active growth. In May, the number of mortgage approvals remained at the level of the previous month at 65K against the expectation of a decrease to 64K. The net volume of lending to individuals increased from 4.2 billion in April to 5.3 billion pounds in May.
In the US, investors didn’t pay attention to the final GDP estimate that was better than expected
The growth was 1.4% against 1.2% in the previous estimate. But the optimism can be postponed. Today we will see data on personal incomes/spending of consumers. In May, personal incomes are expected to grow by 0.3%, personal spending by 0.1%. In June, the consumer confidence index is expected to remain unchanged, 94.5 points. The Chicago PMI may show a decline from 59.4 to 58.0.
Today the positive statistics of Great Britain may fail. The current account is expected to deteriorate from -12.1 billion pounds to -17.2 billion pounds. The final estimates of GDP and business investment for the 1st quarter are expected without change: 0.2% and 0.6% respectively.
It is worth to note that Monday is a shorter working day in the United States, and Tuesday is holiday.
How we trade binary?
Call options buyers have every reason to count on the further growth of the GBP/USD pair, till it’s trading above the level of 1.3003. Their first target will be the area of 1.3051, and then a larger resistance level of 1.3081.
Put options buyers are activated only after returning below the level of 1.3003, and the emerging divergence on MACD may lead to a larger sale of the pound to the support area of 1.2956 with the main goal at 1.2903.
We are looking to purchase Call binary options with 20:00 GMT expiry if a one hour candle closes above the 1.3025 level. If our first target is not reached and the price breaks our support level at 1.2990, the first scenario would be invalidated. We would buy Put options if a one hour candle closes below the 1.2990 level.
Target prices: 1.3025 (Call) or 1.2990 (Put)
Expiry time: 20:00 GMT