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GBP/USD trading - US industrial production - 17 Mar 2017

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GBP/USD trading chart 17 Mar 2017
5/5 of 4 ratings

It’s time to think about trend reversal

Yesterday the main event was the decision of the Bank of England to maintain the current rate (0.25%). As a result, the pound added 70 points. The accompanying statement was neutral, it even indicated the difficulties in consumer demand.

American data pleased investors

As we said in previous reviews, the growth of the counter dollar currencies after the Fed rate increase will precede their subsequent fall in the global strategy of the US dollar strengthening. Perhaps, it is the time to think about the trend reversal. Today, the US data is expected to be good, but we suggest to wait a little to clarify the situation.

In February, the industrial production is expected at 0.2% against the January decrease of 0.3%. The capacity utilization rate is expected to increase from 75.3% to 75.5%. The Michigan consumer confidence index could grow from 96.3 to 97.1 in March.

How we trade binary?

We would buy Call options if the pair rises and fixes above 1.2385. This scenario would be invalidated if the pair goes below 1.2320 in which case we would go for Put options with the end of the expiry.

Asset: GBP/USD
Direction: Call
Target price: 1.2385
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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