Sorry, you need to enable JavaScript to visit this website.

GBP/USD Trading - US housing starts - 16 Dec 2016

You are here

GBP/USD chart 16 Dec 2016
5/5 of 4 ratings

On Thursday, the pair GBP/USD continued to fall against the back of tighter monetary Fed policy.

In the UK the Bank of England left the monetary policy unchanged, noting only that the target inflation slowed down and reducing the economic growth due Brexit is possible. In the US, the business activity indices showed a sharp increase.

Today, the pair GBP/USD will be more relaxed than in the previous two days.

In the US, the housing starts are forecasted at 1.23 million in November, against 1.32 million in October. The number of building permits is expected at 1.24 million against 1.26 million a month earlier.

The UK will present data on the CBI industrial trends orders, which is expected to decrease from -5 to -3. The Bank of England will publish a quarterly report on the economy, which was described by Mark Carney yesterday.

Next week we will get the important data on Thursday (US GDP, consumer spending), so the continuation of the trend depends only on the activity of traders. Our expectations predispose us to the scenario of forming a small consolidation.

How to trade binary

The continuation of downward movement is possible after the breakdown of 1.2365, in this case, the target - 1.2301. The short-term upward movement is possible after the breakdown of 1.2455, where the goal - 1.2492. We would buy Put options if the pair GBP/USD falls below 1.2360. This scenario would be invalidated if the pair goes above 1.2455, in which case we go for Call option with the end of the expiry.

Asset: GBP/USD
Direction: Put
Target price: 1.2365
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.

You may also read