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GBP/USD Trading - US Durable Goods Orders - 23 Nov 2016

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GBP/USD chart 23 Nov 2016
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Today we expect a new breakthrough for the strengthening of the US dollar - the release of important US data with positive expectations.

Yesterday, the Cable was down by 70 points. Even good October data on the public sector borrowing did not help the pound. Also, CBI industrial trend orders amounted to -3 vs. the forecast of-9 and -17 in the previous period.

Yesterday, US data were better than expected.

The Richmond manufacturing index increased from -4 to 4, vs. the forecast of -1. The existing home sales totaled 5.60 million in October vs. the forecast of 5.43 million and 5.49 million (revised upwards to 5.47 million) in September. This is the highest volume for the last 6 years. But, as we wrote yesterday, the market is waiting for the further decline due to sharply increased mortgage rates.

Today, it is worth to pay attention to the data on new home sales in October. The forecast is 593K against 593K in September. It is very likely that we will see data above the forecast. The durable goods orders are expected to increase by 1.5%, the core durable goods orders are expected to grow by 0.2%. The manufacturing PMI is expected to increase from 53.4 to 53.6.

In the evening, the last FOMC meeting minutes will be published. We look forward to the strengthening of the US dollar.

How to trade binary

The short-term upward movement is expected in the range of 1.2512 - 1.2546, the breakout of the upper limit will allow the pair GBP/USD to go higher. The range of 1.2421 - 1.2377 is a key support for the ascending structure of 18 November. If the pair falls below 1.2377, it will go to the level of 1.2301.

Asset: GBP/USD
Direction: Put
Target level: 1.2401
Expiry: 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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