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GBP/USD Trading - US ISM Manufacturing PMI - 3 Jan 2017

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GBP/USD chart 3 Jan 2016
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The first working day of 2017 was optimistic.

However, because of closed the UK and the US markets, the pair GBP/USD showed a decline. However, the Cable experienced increasing pressure from the US political factors.

Today during the Asian session the pair GBP/USD slightly adjusted due to the new portion of the positive statistics from China.

In China, the Caixin Manufacturing PMI rose from 50.9 to 51.9. In December the UK Manufacturing PMI declined from 53.4 to 53.3.

Today the US indicators are expected to be positive: ISM Manufacturing PMI is expected to grow from 53.2 to 53.5. On the eve of Friday's data on NFP, the investors will pay attention to the ISM Manufacturing Employment, which is projected to increase from 52.3 to 52.6.

We expect the pair GBP/USD will complete the correction after the release of the positive US data.

How to trade binary

During today's Asian session the British pound rose slightly against the US dollar. The buyers are limited by the intermediate resistance level of 1.2322. Its new test will lead to the breakdown and moving to 1.2345. The sellers expect to return to 1.2280, as the retest of this level would lead to a reduction in the area of 1.2253. We would buy Put options if the pair GBP/USD falls below 1.2280. This scenario would be invalidated if the pair goes above 1.2322, in which case we would go for Call option with the end of the expiry.

Asset: GBP/USD
Direction: Put
Target price: 1.2280
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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