Yesterday, the pound quotes were expected to fall
Undoubtedly, the main reason for the bearish sentiment is the rising expectations of the Fed's rate hike on March 15. Yesterday the expectations rose to 0.775% yesterday, which corresponds to almost 90% probability of its increase.
The US economic data look still good
In January, the volume of factory orders increased by 1.2% (the forecast was 1.1%). The consumer credit is expected to increase from $14.2 billion in December to $17.1 billion in January. The trade balance in is expected to be -48.5 billion dollars against -44.3 billion in December.
Today, the UK will publish the Halifax house price index for February. The forecast is 0.3% against -0.9% in January.
How we trade binary?
If the pair GBP/USD fails to break through the level of 1.2230, we can expect the recovery of the pound in the area of 1.2270. Bears will try to gain a foothold below 1.2230, which will increase the chance of the further GBP/USD falling to the area of 1.2159.
We would buy Put options if the pair GBP/USD fixes below 1.2230. This scenario would be invalidated if the pair goes above1.2255 in which case we would go for Call options with the end of the expiry.
Target price: 1.2230
Expiry time: 21:00 GMT