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GBP/USD trading - US Manufacturing PMI - 01 May 2017

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GBP/USD trading chart 1 May 2017
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On Friday, the US published the weak GDP data

The US GDP showed 0.7% against the forecast of 1.2%. The Michigan consumer sentiment index was lowered from 98.0 to 97.0. Only Chicago PMI increased from 57.7 to 58.3. However, this factor, of course, could not support the US dollar.

The American Congress was able to present a pleasant surprise on Friday

It was decided to finance the budget until May 5. The Treasury places 13 and 26-week promissory notes for a total of $72 billion, about half of which will go to pay off the old debts. And on Sunday the provisional budget was adopted until the end of September. The budget excluded the construction of the Mexican wall, but increased funding for the health, defense, and the Environmental Protection Agency. This is a good background for the strengthening of the US dollar.

Today many European countries have the day off, however, the US publishes the important data. In March, the personal income is expected to increase by 0.3%, the personal spending is forecasted to grow by 0.2%. In April the Manufacturing PMI is expected to remain unchanged at 52.8.

How we trade binary?

In our view, the price will continue upward if reach 1.2960 level. We would buy Call binary options if a one hour candle opens and closes above the 1.2960 level. If our first target is not reached and the price goes below 1.2891, the first scenario would be invalidated. We would buy Put options if a one hour candle opens and closes below the 1.2891 level.

Asset: GBP/USD
Direction: Call
Target price: 1.2960
Expiry time: 20:00 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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