PMI indexes were weaker in the US
On Friday, we expected that the US business activity indicators will determine the mood of the market for the next two days. So it happens, only PMI indexes were weaker in the US. The Services PMI declined from 53.6 to 53.0, against the expectations of growth to 53.9. The Manufacturing PMI declined from 52.7 to 52.1 against the forecast of 53.1. The new home sales showed 610K against the forecast of 599K.
Today investors can play back the statement of Theresa May
On Friday, Theresa May stated that the rights of EU citizens will be protected in the UK. But T. May did not mean immigrants from Asia and Africa, no one had interfered with the rights of EU citizens before. Investors can play this news back.
In the UK, the BBA mortgage approvals are projected to decline from 40,8K to 40,3K in May. In the US, the durable goods orders are expected to decline by 0.5%, but the base indicator, excluding transport, is expected to grow by 0.4%.
How we trade binary?
On the hourly chart, the pair GBP/USD has the key levels: 1.2754, 1.2660, 1.2585. A return to the level of 1.2754, which wasn’t overcome last Friday, will lead to demand for the British pound and will push it to a new resistance 1.2801.
In the case of unsuccessful fastening to 1.2754, we recommend postponing the purchases of Call’s to a more important support level 1.2702. If the pair falls below the 1.2702 mark, its next target is 1.2660.
We are looking to purchase Put binary options with 20:00 GMT expiry if a one hour candle closes below the 1.2702 level. If our first target is not reached and the price breaks our resistance level at 1.2754, the first scenario would be invalidated. We would buy Call options if a one hour candle closes above the 1.2754 level.
Target prices: 1.2754 (Call) or 1.2702 (Put)
Expiry time: 20:00 GMT