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GBP/USD trading - US new home sales - 23 Mar 2017

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GBP/USD trading chart 23 Mar 2017
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On Wednesday, the pound fell for a short while

This is a sign of a careful repositioning and a more significant drop can be expected today or tomorrow. The US data was worse than expected. In the US, the existing home sales decreased from 5.69 million to 5.48 million in February, against the forecast of 5.59 million.

The further macroeconomic indicators create advantages for the US dollar

In February, new homes are expected to grow from 555K to 565K. After yesterday's data on existing home sales, we can expect a decline here, but we don’t think that it will be critical.

The UK will publish retail sales data where the forecast is 0.4% against the previous -0.3%. On an annualized basis, the outlook is even more optimistic: 2.6% y/y against 1.5% y/y. However, the worse data may be expected here, as inflation indicators surpassed the expectations on Tuesday (Core CPI) and may affect the volumes of retail sales.

Janet Yellen is speaking today, but the topic of the speech is about community development, not monetary policy.

How we trade binary options?

We would buy Call options if the pair rises and fixes above 1.2515. This scenario would be invalidated if the pair goes below 1.2433 and fixes, in which case we would go for Put options with the end of the expiry.

Asset: GBP/USD
Direction: Call
Target price: 1.2515
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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