Yesterday, the US dollar had good reasons for strengthening
In the UK, the Manufacturing PMI dropped from 56.3 to 54.3. In the US, ISM Manufacturing PMI, as we expected, came out better than expected, the June indicator was 57.8 against the forecast of 55.2 and 54.9 in May.
Today the US celebrate the Independence Day
In the UK, the Construction PMI is expected to decrease from 56.0 to 55.0 in June. Today, we expect the pair GBP/USD to descend to 1.2860.
How we trade binary?
Call options buyers are activated when the GBP/USD pair returns above 1.2956, which opens a straight road to the 1.2985 and its maximum of 1.3019. In the case of an unsuccessful attempt the best way to postpone Call options purchasing till the false breakout at 1.2903.
Put options buyers will try to return to the 1.2903 area. The consolidation below, in the case of weak British fundamental data, will lead to a quick sellout already in the area of the larger support 1.2845.
We are looking to purchase Call binary options with 20:00 GMT expiry if a one hour candle closes above the 1.2956 level. If our first target is not reached and the price breaks our support level at 1.2903, the first scenario would be invalidated. We would buy Put options if a one hour candle closes below the 1.2903 level.
Target prices: 1.2956 (Call) or 1.2903 (Put)
Expiry time: 20:00 GMT