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GBP/USD Trading - US Services PMI - 19 Dec 2016

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GBP/USD chart 19 Dec 2016
4.8/5 of 5 ratings

On Friday, the pair GBP/USD demonstrated growth on the back of the weak US data

The UK CBI industrial trend orders totaled 0 vs. the forecast of -5 and the previous -3. The US data were weak. The building permits totaled 1.20 million vs. the forecast of 1.24. The housing starts totaled 1.090 million against the forecast of 1.230.

Today we expect a quiet day

The US is to publish data on the Markit composite PMI and Services PMI which is forecasted to grow to 55.2 against the previous 54.6. The market is not enough incentive to continue the correction. Today we expect a sideways movement.

How to trade binary

On the hourly chart, the pair GBP/USD has the key levels: 1.2524, 1.2492, 1.2453. The continuation of downward movement is possible after the breakdown of 1.2388. The range of 1.2495 - 1.2524 is a key support for the downward structure. If the pair overcomes it, in this case, the target - 1.2584.

We would buy Put options if the pair declines below 1.2411. This scenario would be invalidated if the pair goes above 1.2524, in which case we go for Call option with the end of the expiry.

Asset: GBP/USD
Direction: Put
Target price: 1.2411
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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