The British pound has painfully reacted to the weakened inflationary data
In June, the Core CPI fell from 2.6% y/y to 2.4% y/y. The total CPI fell from 2.9% y/y to 2.6% y/y vs. the forecast of maintaining unchanged. The retail prices declined from 3.7% y/y to 3.5% y/y, against the expectations of 3.6% y/y. The housing prices showed better than expected, but they also fell: 4.7% y/y versus 5.3% y/y.
Today we expect good data from the US construction market
The forecasts are good. In June, the number of housing starts is expected to be 1.16 million vs. 1.09 million in May. The number of building permits is expected to be 1.20 million vs. 1.17 million earlier. We think that the pair GBP/USD can so far trade in the range of 1.2970-1.3050.
How we trade binary?
We are looking to purchase Call binary options with 20:00 GMT expiry if a one hour candle closes above the 1.3055 level. If our first target is not reached and the price breaks our support level at 1.2995, the first scenario would be invalidated. We would buy Put options if a one hour candle closes below the 1.2995 level.
Target prices: 1.3055 (Call) or 1.2995 (Put)
Expiry time: 20:00 GMT