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GBP/USD trading - US GDP - 29 Jun 2017

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GBP/USD trading chart 29 June 2017
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Mark Carney pushed the British pound up

On Wednesday, the head of the Bank of England, Mark Carney, said that the rise in inflation is likely to soon lead to a reduction in incentives, that is, the Bank of England will begin to gradually raise rates. The pound closed the day up by 112 points.

The forecast for the US economy remained unnoticed

The IMF lowered the forecast for the US economy for the current year from 2.3% to 2.1% and next year from 2.5% to 2.1%, but this news, which had a real opportunity to influence the weakening of the US dollar, was unnoticed. The US macroeconomic data was neutral: in May, the goods trade balance amounted to -65.9 billion against the forecast of -66.2 billion. The pending home sales decreased by 0.8%, with the expectation of growth of 0.8%. The wholesale inventories increased by 0.3% against the forecast of 0.2%.

Today, the US will present the final estimate of GDP for the first quarter - the forecast is unchanged, 1.2%. The initial jobless claims are expected, as in the previous week, 241K. We expect the pair GBP/USD at around 1.3040.

Ho we trade binary?

Currently, the level 1.2989 is of great importance and the fastening on it will be a clear signal to the purchases of Call options with the purpose of updating 1.3037. While the pair GBP/USD is above 1.2951, we can consider continuing the upward trend. If the GBP/USD drops below the level of 1.2951, it's best to postpone the Call options.

Put options buyers will try to stay below the level of 1.2989 and the formation of a false breakdown there, along with the divergence on the MACD indicator, will be a good signal to buy Put options.

We are looking to purchase Call binary options with 20:00 GMT expiry if a one hour candle closes above the 1.2989 level. If our first target is not reached and the price breaks our support level at 1.2951, the first scenario would be invalidated. We would buy Put options if a one hour candle closes below the 1.2951 level.

Asset: GBP/USD
Target prices: 1.2989 (Call) or 1.2951 (Put)
Expiry time: 20:00 GMT

Comments

Jannik P.'s picture

Target Price: 1.2989
Close Price: 1.2997
Direction: Call
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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