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GBP/USD trading - US services PMI - 24 Mar 2017

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GBP/USD trading chart 24 Mar 2017
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The US dollar is trying to strengthen

In the US, the new home sales amounted to 592K in February against the forecast of 565K and 558K in January. In the UK, the February retail sales increased by 1.4% against the forecast of -0.4%, and thanks to this, the Cable added 36 points.

Today's data will be in favor of the US dollar

In February, the volume of durable goods orders is expected to grow by 1.1%. The Core durable goods orders are expected to increase by 0.5%. The Services PMI is expected to increase from 53.8 to 54.2. The Manufacturing PMI from can reach 54.8 against the previous 54.2.

The second attempt to vote on the abolition of Obamacare is scheduled for today. Any result of the voting will lead to the strengthening of the US dollar - either as a relief to the budget or as a fear of a new political crisis. Donald Trump said that if the vote fails on Friday, he will switch to promoting new reforms.

How we trade binary?

Today, the optimal area for buying Call options will be level 1.2466, but in a case of forming a false breakout with the main target to 1.2517. If the sharp rebound doesn’t happen, it is better to postpone the purchase of Call options. If the pair GBP/USD fixes below 1.2466, we would buy Put options, as the break of this level will lead to a quick descent of the pair to the area of 1.2426 and 1.2386.

We would buy Call options if the pair rebounds from the level of 1.2466. This scenario would be invalidated if the pair goes below 1.2466 and fixes, in which case we would go for Put options with the end of the expiry.

Asset: GBP/USD
Direction: Call
Target price: 1.2466
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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