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GBP/USD trading - US GDP - 28 Feb 2017

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GBP/USD trading chart 28 Feb 2017
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The Cable is trading under the pressure from the news of the referendum in Scotland

Yesterday, the US data were mixed. In January, the durable goods orders rose by 1.8% against the expectation of 1.7%. The core durable goods orders fell by 0.2% (forecast + 0.5%), the pending home sales decreased by 2.8% in January against the expectations of growth by 1.1%.

Yesterday Trump supported the US stock market

At the meeting with the governors, Donald Trump announced an increase in arms spending by 9%. Today the president speaks in Congress. The President will present the plan to reform health insurance, and perhaps some of the details of the tax reform. The tax changes will be issued in May and will take effect in the new budget in October. Taking into account that the main points of the tax reform are already known, the expected meeting may be only a pretext for a new wave of dollar buying.

Today the US will present the data on GDP for the 4th quarter in the 2nd assessment. The forecast is 2.1% vs. 1.9% previously. In January, the wholesale inventories are expected to increase by 0.5%. Chicago PMI can rise from 50.3 to 53.0 in the current month. The consumer confidence from the Conference Board may show a slight deterioration in February (111.0 vs. 111.8) and the Richmond manufacturing index (10 vs. 12). The pound sterling could accelerate the fall after overcoming the technical support at 1.2415.

How we trade binary

We would buy Put options if the pair GBP/USD goes below 1.2408. This scenario would be invalidated if the pair goes above1.2482 in which case we would go for Call options with the end of the expiry.

Asset: GBP/USD

Direction: Put

Target price: 1.2408
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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