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GBP/USD Trading - US existing home sales - 22 Nov 2016

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GBP/USD chart 22 Nov 2016
4.7/5 of 6 ratings

As we expected, the pair GBP/USD showed correction yesterday.

The Cable has added 147 points even more than our expectations. However, the optimistic statistics will be released only today. The public sector net borrowing is predicted to decrease from 10.1 billion pounds in September to 5.9 billion in October. The CBI industrial trends orders are expected to growth from -17 to -8.

Today, it is worth to pay attention to data on existing home sales in the US.

The forecast is 5.43 million against 5.47 million in September. This is still a high rate from 2011, but in November we expect a decrease in sales in the secondary and the primary market. This is due to a sharp increase in mortgage rates, which amounted to 3.95% versus 3.75% two weeks earlier.

The Richmond manufacturing index is projected to increase from -4 to 1. Tomorrow the strengthening of the US dollar may resume. The durable goods orders could rise by 1.2% in the US. Today the pair GBP/USD may linger near the 1.2480 then follow to 1.2330.

How to trade binary

The short-term upward movement is possible in the range of 1.2512 - 1.2546. The short-term downward movement is possible in the range of 1.2451 - 1.2421, the breakdown of the lower limit will lead to a deep correction, the goal - 1.2377.

We would buy Call options if the pair GBP/USD rises above 1.2512. We would buy Put options if the pair falls below 1.2451.

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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