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GBP/USD Trading - US dollar shows correction - 10 Jan 2017

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GBP/USD chart 10 Jan 2017
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The British pound started the week with a strong fall.

After the words of the Prime Minister Theresa May to complete the Brexit agreement even without taking into account the loss of banking preferences, the British pound lost 120 points.

The UK economic indicators came out good, but they weren’t able to prevent the decrease of the British currency.

In the US, consumer credit was 24.53 billion dollars, which exceeds the amount of the previous month by 8.3 billion.

Today in the UK the retail sales monitor from BRC showed an increase of 1.0% in December. In China, the producer price index rose from 3.3% to 5.5%, the forecast was 4.6%.

The US is to publish Small Business Optimism index from NFIB. The forecast is 99.6 vs. 98.4 in the previous month. The wholesale inventories are expected unchanged at 0.9%.

How to trade binary

We would buy Put options if the pair GBP/USD declines below 1.2120. This scenario would be invalidated if the pair goes above 1.2185, in which case we would go for Call option with the end of the expiry.

Asset: GBP/USD
Direction: Put
Target price: 1.2120
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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