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GBP/USD trading - US existing home sales - 22 Mar 2017

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GBP/USD trading chart 22 Mar 2017
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The US stock market fell after Trump statement

Yesterday, the main event was the fall of the US stock market by 1.24% in connection with the proposal of Donald Trump to close the program of compulsory health insurance (Obamacare). The US dollar weakened after it.

Yesterday's GBP/USD growth was also supported by good data from the UK

In February, the core CPI grew from 1.6% y/y to 2.0% y/y against the expectations of 1.8%. The CPI rose from 1.8% to 2.3% y/y against the expectations of 2.1% y/y. The Core RPI rose to from 2.9% y/y to 3.5% y/y. In January, the house prices were strongly revised downward - from 7.2% y/y to 5.7% y/y. The February forecast was 6.4%, the data showed 6.2% y/y. Such a sharp decline in property prices on a back of rising retail prices, with a fall in sales volumes and a fall in industrial production (-0.4% in January) signals a crisis in the UK.

Today, the US publishes data on existing home sales. The forecast is 5.57M against the previous 5.69M. Tomorrow we will see new home sales. The forecast is 566K against 555K which won’t create any fears in the local situation.

The Cable is currently being held at the local maximum and there may still be a fight to 1.2520.

How we trade binary?

We would buy Call options if the pair rises and fixes above 1.2510. This scenario would be invalidated if the pair goes below 1.2433 in which case we would go for Put options with the end of the expiry.

Asset: GBP/USD
Direction: Call
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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