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GBP/USD Trading - US crude oil inventories - 08 Feb 2017

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GBP/USD trading chart 8 Feb 2017
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We continue to talk about the beginning of the US dollar purchases

Yesterday, the Cable lost 120 pips during the European session, but a rapid decline was unprofitable for a significant part of the players, and the pound was pushed up much higher, closing the day rising by 40 points.

However, the trading volumes were less than on Monday and Friday, so it’s still too early to say about the net purchases of the dollar

Yesterday the US presented neutral data: in December the trade balance showed -44.3 billion vs. the forecast of -45.0 billion. The consumer credit decreased from 25.2 billion to 14.16 billion.

Today, the US will publish data on the crude oil inventories. The crude oil inventories are expected to grow by 2.529 million barrels and distillates by 0.30 million barrels. The data may be even higher since the AIN has already reported an increase by 14.23 million barrels against the forecast of 2.50 million.

Today the movement of the pound will be based on the decision of the Parliament of the United Kingdom to grant powers to the Prime Minister for the decision to withdraw the UK from the EU. If this decision is made, it is likely the British pound will continue to grow to the 1.2537 area, the breakout of this level will lead to new highs in the 1.2558 range.

The traders may begin to buy Put options after a successful break of 1.2480 support with the main goal at 1.2426. We also suggest buy Put options only after a failed fixing above 1.2537.

How we trade binary

We would buy Put options if the price goes below 1.2480. This scenario would be invalidated if the pair goes above 1.2537, in which case we would go for Call option with the end of the expiry.

Asset: GBP/USD

Direction: Put

Target price: 1.2480
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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