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.
Target price: 1.2770
Expiry time: 20:00 GMT