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GBP/USD Trading - US pending home sales - 30 Jan 2017

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GBP/USD trading chart 30 Jan 2017
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Friday's US data slightly disappointed

The GDP for the 4th quarter went even worse than the forecast, 1.9% against 2.1%. In December, the durable goods orders fell by another 0.4% after -4.6% in November, the forecast was 2.6%. The core durable goods orders gained the expected 0.5%. The consumer confidence increased from 98.1 to 98.5.

We believe that the GDP will continue to be revised in a big way

This week, the US economic data is expected to be good. Probably, on Friday investors focused on the optimistic developments. Today, the personal income is expected at 0.4% after the previous 0.0%. The personal spending is expected to increase from 0.2% to 0.5%. The pending home sales are expected to increase by 1.1% after a reduction of 2.5% a month earlier.

How to trade binary

During today's Asian session, the British Pound strengthened against the US dollar, but then began to decline gradually. The buyers expect to re-return to the area of 1.2595, a break of which will lead to new highs in the 1.2634 area. The sellers are focused on the support level 1.2542, the break of which will lead to a test of 1.2495.

We would buy Put options if the price goes below 1.2542. This scenario would be invalidated if the pair goes above 1.2595, in which case we would go for Call option with the end of the expiry.

Asset: GBP/USD

Direction: Put

Target price: 1.2542
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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