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GBP/USD trading - US federal budget balance - 12 June 2017

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GBP/USD trading chart 12 June 2017
5/5 of 3 ratings

GBP/USD consolidates in anticipation of the Fed meeting

On Friday, despite a strong reaction to the results of the parliamentary elections in the UK, the macroeconomic data was very weak. The manufacturing production added 0.2% in April against the forecast of 0.9%. The industrial production added 0.2% against expectations of 0.8%. The construction output collapsed by 1.6% against the forecast of +0.5%.

In the next two days, we don’t see the significant reasons for the fall of the pound

However, the Cable also has no reason to grow. On Wednesday, the Fed will hold a meeting and the probability of a rate increase is 90%. Today is a poor day for the macroeconomic data. The US budget deficit is projected at -86.5 billion dollars in May. In the previous two years, the May deficit was somewhat smaller. Tomorrow, the mixed inflation indicators are expected in the UK.

As a result, we are waiting for the consolidation of the price in the range of 1.2770-1.2830 per pound.

How we trade binary?

We would buy Call binary options with 20:00 GMT expiry if a one hour candle closes above the 1.2770 level. If our first target is not reached and the price goes below 1.2690, the first scenario would be invalidated. We would buy Put options if a one hour candle closes below the 1.2690 level.

Asset: GBP/USD
Direction: Call
Target price: 1.2770
Expiry time: 20:00 GMT

Comments

Jannik P.'s picture

Target Price: 1.2690
Close Price: 1.2657
Direction: Put
Expiry Time: 20:00 GMT
Result: ITM

Jannik P.

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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