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GBP/USD trading - US new home sales - 25 Apr 2017

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GBP/USD trading chart 25 Apr 2017
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Investors will be concentrated on the US budget

On Monday, there was a slight decline after the emotional opening of the markets - either it is already a reversal or just a correction. We adhere to the idea that this is the reversal of the markets. The CBI industrial trends orders descended from 8 to 4.

Today, the US congressmen are returning from vacation

Since the 29th, the US budget will begin to experience an ever-increasing pressure of deficit, which could lead to another fiscal break. For 4 days, the issue of raising the limit of the state debt won’t be solved therefore, the dollar will be traded under pressure. Nevertheless, in 2013, when such a fiscal break came, nothing catastrophic happened on the market. This shows only one thing - the strong fluctuations of the dollar aren’t necessary for the US.

Today, the US will publish data on new home sales in March, the forecast is 583K against 592K in February. The index of consumer confidence from the Conference Board is expected at 122.5 against 125.6 earlier. The Richmond Manufacturing Index can decrease from 22 to 16 points. The house price index can rise by 0.3%.

In the UK, the public sector net borrowing of the public sector is expected at 1.5 billion pounds, compared with 1.08 billion in February. Now the main focus is on the US budget.

How we trade binary?

In our view, the price will continue upward if reach 1.2833 level. We would buy Call binary options if a one hour candle opens and closes above the 1.2833 level. If our first target is not reached and the price goes below 1.2774, the first scenario would be invalidated. We would buy Put options if a one hour candle opens and closes below the 1.2774 level.

Asset: GBP/USD
Direction: Call
Target price: 1.2833
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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