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GBP/USD Trading - US retail sales - 13 Jan 2017

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GBP/USD chart 13 Jan 2017
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Yesterday the British pound tried to strengthen.

Yesterday, the Cable was trying to strengthen, but he had nothing to oppose the strengthening of the US dollar, so the pound lost 50 points. In the US, the initial jobless claims showed 247K against the expectations of 266K. In yesterday's speech, Charles Evans made the likelihood of 4 percent economic growth in the case of implementation of Donald Trump plans.

 It seems we see the neutral relationship between Donald Trump and the Fed at the moment.

We will see a major struggle, when the new president will try to introduce his people to the Board of Governors. President Obama couldn’t do it.

Todat the December data on retail sales will be the main event. The forecast is 0.7%. The retail sales (excluding motor vehicles) are expected to increase also by 0.4%. The core retail sales are expected to increase by 0,5%.

The Michigan Consumer Sentiment index is expected to increase to 98.5 against the previous 98.2. The business inventories are expected to increase by 0.5% in November compared to -0.2% in October. Accordingly, we expect the US dollar strengthening against, and the reduction of the pair GBP/USD in the area of 1.2020.

How to trade binary

During today's Asian session the British pound traded sideways against the US dollar. The price should rise above 1.2180 to regain the buyers. Then we can expect the test of 1.2203.
The sellers will try to drop below 1.2141. Then we expect activation of sellers that lead to the area of 1.2132. We would buy Put options if the pair GBP/USD falls below 1.2141. This scenario would be invalidated if the pair goes above 1.2180, in which case we would go for Call option with the end of the expiry.

Asset: GBP/USD

Direction: Put

Target price: 1.2141

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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