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GBP/USD Trading - US Durable Goods Orders - 27 Jan 2017

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GBP/USD trading chart 27 Jan 2017
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The US dollar began to strengthen

Finally, investors are on the positive, and we look forward to the medium-term growth of the US dollar. Not all economic data were in line with the forecasts, but the overall positive trend has taken place.

Yesterday the British pound fell by only 39 points thanks to the strong data

The GDP for the 4th quarter was better than expected 0.6% versus 0.5%. BBA mortgage approvals increased from 41.0K to 43,2K in December. However, the retail sales balance of the CBI was a disaster: -8 versus 35 in December and 28 forecast.

The U.S. fundamental data were strong. In December, wholesale inventories rose by 1.0% against the expectations of 0.9%. In January Services PMI increased from 53.9 to 55.1 (forecast 54.4). Initial jobless claims rose from 237K to 259K (247K forecast). In December, the new homes sales fell from 598K to 536K against the expectation of decline to 585K.

Today the main event will be the release of the US GDP for the 4th quarter in the 1st assessment. The forecast is 2.2%. There are the chances that the release will be better than the forecast. The durable goods orders are expected to increase by 2.6%, core orders, excluding transportation, may show an increase of 0.5%. The Michigan consumer confidence is expected to rise from 98.1 to 98.2.

How to trade binary

We would buy Put options if the price goes below 1.2510. This scenario would be invalidated if the pair goes above 1.2580, in which case we would go for Call option with the end of the expiry.

Asset: GBP/USD

Direction: Put

Target price: 1.2510
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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