The US dollar can get the indirect support
On Monday, the British pound strengthened in the morning. But then the US dollar seized the initiative. As a result, the pair GBP/USD closed the day near the opening level.
Today, the US publishes data on economic indicators, but the forecasts are mixed
In February, the goods trade balance is expected with a slight improvement (-66.6 billion vs. -68.8 billion in January). The wholesale inventories can show an increase of 0.2%. The S&P/CS HPI Composite – 20 n.s.a. can show growth from 5.6% y/y to 5.7% y/y. In March, the Richmond manufacturing index can be reduced from 17 to 16 points. The Consumer confidence from the Conference Board is expected to decline from 114.8 to 114.0.
The US dollar may get the indirect support in form of Donald Trump yesterday initiative to administratively ease energy companies producing oil, coal and alternative energy, which will serve as the removal of a number of environmental and procedural restrictions of the previous president.
How we trade binary?
Yesterday the pair GBP/USD couldn’t overcome the resistance level 1.2612. To date, the cable should hold above 1.2545 to continue its growth. This will lead to a second increase in the resistance range of 1.2581 and the renewal of yesterday's high at 1.2612. The bears are trying to fix below 1.2545, which opens a direct road to the intermediate support of 1.2512.
We would buy Call options if a one hour candle opens and closes above the 1.2554 level. This scenario would be invalidated if the pair goes below 1.2545 and fixes, in which case we would go for Put options with the end of the expiry.
Target price: 1.2545
Expiry time: 20:00 GMT