The pair GBP/USD awaiting the NFP data
Yesterday, the pair GBP/USD was traded in the range of 1.2148 - 1.2186. The pair was traded under the influence of the speech of ECB head Mario Draghi and in anticipation of today's data on non-farm payrolls.
Today, British data is expected to be weak
In the UK, the trade balance is expected to be -11.1 billion pounds in January against -10.9 billion in December. The trade balance without taking into account the EU countries is expected to be -2.5 billion pounds against -2.1 billion in the previous period. The industrial production could fall by 0.4%. The manufacturing production can be reduced by -0.6%. The construction output is expected to decline by -0.2%.
The key data of the day will come out in the American session. In February, the non-farm payrolls are expected to be 190K. The unemployment rate is expected to be 4.7% compared to 4.8% a month ago. The average hourly earnings can increase by 0.3%. The Federal budget balance is expected at -150 billion dollars against the surplus of 51.3 billion dollars in January.
How we trade binary
We would buy Call options in the case of forming a false breakdown in the area of 1.2141, on which very much depends today. In the case of a breakdown of this level, it is possible to return to Call options only after the reduction to the support area of 1.2093. The bulls can also try to break above 1.2190. We also advise you to buy Put options after a real breakdown of the 1.2141 and fixing below.
We would buy Put options if the pair GBP/USD goes below 1.2140. This scenario would be invalidated if the pair forms the false breakdown and go to the 1.2190 in which case we would go for Call options with the end of the expiry.
Target price: 1.2140
Expiry time: 21:00 GMT