British pound poised for a rally against the US dollar
The British pound has performed well on Monday and we are holding the view here, at Binary Options Post that this rally is the first of a couple of days of nigher closes. As the UK interest rates path clears out we are looking at the GBP/USD pair halting its recent decline due to speculation about the Federal reserve hiking rates.
The GBP/USD currency pair has traded in a very interesting way throughout the day with the Britihs pound coming up on top and rallying some 0.5% and reversing its recent fortunes after the amazing non-farm payrolls report which the U.S. department of labor unveiled last Friday.
The pair started the day marking a new multi-month low around 1.5540, which was neglected by the bears and skipped as a factor in early London trading as the British pound rallied strongly throughout the whole day pretty much.
The decline during the Asian session was only repeated towards the end of U.S. trading, but the GBP/USD pair retreated only mildly to test the support level around 1.5645. Subsequently, the base held at that level and we are currently seeing a modest rebound towards 1.5655.
On our view as usual there are two scenarios for this pair. Our first choice is to buy daily calls for Tuesday's expiry around current levels of 1.5655, or wait until the European trading opens later today for somewhat better level. A retest of 1.5645 is not out of the question.
In the alternative case, we will reverse our daily calls position and buy daily puts in the case of 1.5630 failing to hold on a sustained hourly basis, which will bring the pair to lower levels for a retest of 1.5600 and below. For now we view 1.5700 and 1.5725 as more likely levels tomorrow.