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GBP/USD Trading - US Manufacturing PMI - 24 Jan 2017

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GBP/USD trading chart 24 Jan 2017
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Om Monday the Cable increased by 160 points due to the news from the US

The main event of the day was the signing of the US president Donald Trump decree on withdrawal from the Trans-Pacific Partnership trade. Before that, he held a meeting with representatives of US businesses where he promised to cut taxes and reduce government regulation, but the companies should save their production in the country.

Donald Trump also signed other decrees

The new president said on the need to review the North American Free Trade Area Agreement (NAFTA), after that news the Mexican peso has added about 2.5%. D.Trump froze the hiring of government employees to stop inflating the public sector. Trump also began to struggle with abortion, the first thing he had cut off funding for organizations conducting these operations abroad.

Today, the UK Supreme Court decides on the legality of the Prime Minister with respect to start-up the Brexit process. However, the market's reaction still may be unpredictable. On the one hand, we can see the good news for « strong Brexit», on the other hand – canceling of bureaucratic obstacles which increase the certainty of the process. However, if the investors consider “hard Brexit” a priori, the more likely another decision will be a boon for the markets.

In the UK, public sector net borrowing is expected to decrease from 12.21 billion pounds to 7 billion. The US Manufacturing PMI is projected to rise from 54.3 to 54.6. The existing home sales are expected at 5.52 million against 5.61 million previously. The Richmond Manufacturing Index may reduce - the forecast 7 against the previous 8.

How to trade binary

The continuation of upward movement is possible after the breakdown of 1.2535. The short-term downward movement is possible in the range of 1.2443 - 1.2377, the breakout of the lower limit will lead to a deep correction.

We would buy Put options if the pair GBP/USD declines below 1.2440. This scenario would be invalidated if the pair goes above 1.2535, in which case we would go for Call option with the end of the expiry.

Asset: GBP/USD

Direction: Put

Target price: 1.2440
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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