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.
Target price: 1.2385
Expiry time: 21:00 GMT