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

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GBP/USD trading chart 23 May 2017
4.7/5 of 7 ratings

Yesterday the market was calm

The American stock market grew by 0.52%, the yields of government bonds rose slightly. The British pound lost 34 points, probably due to excessive growth on Friday (as we said earlier, the pound is growing on speculative sentiment and reduced volumes).

Today the important American and British economic data will be published

In the UK, the public sector net borrowing is expected to increase from 4.37 billion pounds to 8.15 billion in April. The CBI distributive trades survey is projected to decrease from 38 to 10 in May. It’s worth to pay attention to parliamentary hearings on inflation report.

In the US, the May Manufacturing PMI is expected to grow from 52.8 to 53.0. The Services PMI can grow from 53.1 to 53.3. The new home sales are projected with a decrease - the estimate for April is 611K against 621K in March. The index of business activity in the manufacturing sector of Richmond is expected to descend in May - the forecast is 15 vs. 20. Investors are waiting for the government draft budget for the new financial year, which, as known, offers the cuts to budget expenditures, the main of which is Medicaid, by 800 billion dollars.

We expect movement of the pair GBP/USD in the range 1.2965-1.3039.

How we trade binary?

We would buy Put binary options with 20:00 GMT expiry if a one hour candle closes below the 1.2970 level. If our first target is not reached and the price goes above 1.3039, the first scenario would be invalidated. We would buy Call options if a one hour candle closes above the 1.3039 level.

Asset: GBP/USD
Direction: Put
Target price: 1.2970
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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