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GBP/USD Trading - US dollar weakening - 23 Jan 2017

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GBP/USD trading chart 23 Jan 2017
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Donald Trump wants to see the US dollar weak

Friday's inauguration speech of Donald Trump has made a positive effect on the markets after some confusion. But the British pound has increased and continues to increase, bearing in mind the statement of Tramp about the too strong dollar.

Meanwhile, December retail sales fell by 1.9% against the expectations of -0.1% in the UK

If the investors really believe in the logic of the application of the new president, that the devaluation of the national currency will lead to advantages in foreign trade, the growth of the euro and the pound may continue for a few more weeks.

However, we think that the objective market forces, the most important of which is the Fed's policy could reverse the US dollar for strengthening "sooner rather than later."

It is necessary to wait for the first action of Donald Trump (as expected, they will deal with the migration policy) and then we can make the first conclusions.

Today, the US and the UK have an empty economic calendar.

How to trade binary

Today, the pair GBP/USD reached 1.2426, suggesting the need for fixation of the profits. Defining zones will be formed after determination of the week high. In the case of consolidation above the level of 1.2470, the next target will be 1.2560.

We would buy Call options if the pair GBP/USD rises above 1.2470. This scenario would be invalidated if the pair goes below 1.2366, in which case we would go for Put option with the end of the expiry.

Asset: GBP/USD

Direction: Call

Target price: 1.2470
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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