On Friday, the pound lost about 130 pounds
The Cable began to decline after the news about the rapid preparation of a referendum on Scottish independence. The US economic data was positive, which contributed to the dollar buying: in January the new home sales amounted to 555K against 535K in December, the Michigan consumer sentiment index increased from 95.7 to 96.3 in February.
Today, the movement of the pair GBP/USD will depend on the US data
In January, the durable goods orders are expected to increase by 1.7%, on the core durable goods orders are expected to grow by 0.5%. The pending home sales may show an increase of 0.8% in January.
On Tuesday, Donald Trump speaks in Congress. The Democratic Party elected a new chairman of the National Committee Tom Perez for this job. The speech will be devoted to the reform of the health insurance. Tomorrow we will also get the US GDP forecast for the 4th quarter - the forecast is 2.1% against 1.9%.
How we trade binary
We won’t see the strong upward movement of the pair GBP/USD today. We would buy Call options after fixing above 1.2470. This scenario would be invalidated if the pair goes below 1.2410 in which case we would go for Put options with the end of the expiry.
Target price: 1.2470
Expiry time: 21:00 GMT