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GBP/USD Trading - US new home sales - 23 Dec 2016

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GBP/USD chart 23 Dec 2016
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Yesterday, the US released positive data that helped the US dollar strengthen.

Despite the fact that some indicators were weaker than forecasts – the overall trend is positive. In November, the core durable goods orders rose by 0.5% vs. 0.2%. The durable goods orders decreased by 4.6% vs. the forecast of -4.9%. In the final assessment, the US GDP for the 3rd quarter has been revised from 3.2% to 3.5% vs. expecting the growth of 3.3%.

However, the data on personal spending and income were worse than expected.

The personal income showed zero growth vs. the forecast of 0.3%, the spending increased by 0.2% against the forecast of 0.4%. In any case, there is no deterioration of the dynamics.

Today the UK is to publish data on the balance of payments for the third quarter - the forecast -27.5 billion pounds vs. the previous -27.9 billion.

The US Michigan consumer sentiment is expected to grow from 98.0 to 98.2. The new home sales are projected at 575K in November v. 563K in October.

How to trade binary

The continuation of downward movement is possible after the breakdown of 1.2265, in this case, the target - 1.2156. Today, buyers are expected to return to the area of the first major resistance level of 1.2316. Only its break would lead to a large correction in the area of 1.2345. We would buy Put options if the pair GBP/USD declines below 1.2265. This scenario would be invalidated if the pair goes above 1.2316, in which case we would go for Call option with the end of the expiry.

Asset: GBP/USD
Direction: Put
Target price: 1.2265
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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