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GBP/USD Trading - US Retail Sales - 12 Aug 2016

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GBP/USD Trading - US Retail Sales - 12 Aug 2016
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Friday will be full of important reports.

During the Asian session, investors got weak data from China. The industrial production fell from 6.2% to 6.0% in July. The retail sales showed 10.2% against 10.6% in June. The asset investments decreased to 8.1% from 9.0%.

Today the United States will present data on retail sales. The retail sales are expected at 0.4% in July after 0.6% in June.

The Producer Price Index (PPI) is expected at 0.1%. The core PPI is expected to decrease by 0.1% against the previous. The Michigan consumer sentiment index is expected to increase to 91.5 against the previous 90.0.

How to trade binary

The continuation of downward movement is possible after the breakdown of 1.2940, in this case, the target - 1.2844. The short-term upward movement is possible in the range of 1.3036 - 1.3083. We would buy put options if the pair GBP/USD falls below 1.2940.

Asset: GBP/USD
Direction: Put
Target price: 1.2940
Expiry time: 20:00 GMT

Comments

wiesbadener's picture

I can not understand. Why do not set the put as high as possible? I set the put at 1,294 when he touched it, and the trend is sharply upward ... Sorry my bad english, I am a German.

wiesbadener
Zoran D.'s picture

What do you mean when you say " as high as possible? "
I choose the level 1.2940 with the expiry 20:00 GMT.
If you select anothe expiry time, of couse you should choose another level to buy put/call.
In my situation the price didn't touch the level 1.2490 and bounced up after the weak US retail data. If I'd set the PUT level higher it'd touched it and bought the PUT option. So, the result would be OTM if the price wouldn't reverse and decline. In my case the price didn't touch 1.2940 and bounced up. Even if it wouldn't reverse and descended it was "not traded". So it was less risky to set at 1.2940 in my case. As the result was ITM at 20:00 GMT

Zoran D.

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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