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GBP/USD Trading - US durable goods orders - 22 Dec 2016

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GBP/USD chart 22 Dec 2016
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Yesterday the pair GBP/USD tried to show growth but declined by the end of the day

In the UK, public sector net borrowing totaled 12.21 billion pounds in November against the forecast of 11.3 billion and 4.3 billion in October. The news is negative, but it is the lowest the November budget deficit for the last 9 years, so the figure can be called good. The market turned with the opening of the US session. The existing home sales increased from 5.57 million to 5.61 million in November.

Today, the US will publish data that can give a strong impetus to the further strengthening of the dollar

The core durable goods orders (excluding transport) are forecasted to grow by 0.2% in November. General orders are expected to decline by 4.7% against growth of 4.6% in October. However, the volatility of this indicator is caused by the orders from the aviation company "Boeing", so it is already taken into account by the market. In the final assessment, the US GDP for the 3rd quarter is expected to be revised upwards from 3.2% to 3.3%.

In November, the personal income may show an increase of 0.3% against the previous 0.6%. The personal spending may be unchanged at 0.3%. The house price index is expected to increase by 0.4%. The index of leading economic indicators (Leading Index) by the company Conference Board expects the growth of 0.2% in November.

In the UK, Gfk consumer confidence showed -7 against the forecast of -8 points.

How to trade binary

The continuation of downward movement is possible after the breakdown of 1.2340. The pair GBP/USD can show an increase if overcomes the resistance level of 1.2385. We would buy Put options if the pair declines below 1.2340. This scenario would be invalidated if the pair goes above 1.2385, in which case we would go for Call option with the end of the expiry.

Asset: GBP/USD
Direction: Put
Target price: 1.2340
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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