GBP/USD slowing down and consolidating, lets play the range
With the week slowly drawing to a close we will try to trade some binary options in the forex pair between the pound sterling and the US dollar. The pair is currently consolidating between 1.6050 and 1.61, so we will keep a close eye and react.
We want to play this range between 1.6050 and 1.61 so we will be buying calls if price drops to 1.6050 or buy puts if the price moves higher to 1.61 on an hourly basis
It is a very simple Friday afternoon strategy that we recommend ,considering that we are not likely to get any very important news during the US session. Players should be paying attention and simply wait for an opportunity to play this tight range in the GBP/USD pair.
Late Asian and early European trading tested the topside in the pair around 1.6090, however we feel that this top can be punctured for a short period of time to 1.61. On the downside initial support was provided at 1.6048 in London trading hours, so the level to keep an eye here is around the same point - 1.6045-50.
We will be stopping to trade if the levels are broken on a sustained basis. For every binary options investor it is important to have a nice and calm weekend, so beware not to lose money in the final hours of the week.
The only important news on the horizon are at 13:30 when the US reports Import and Export Price Indices and the NY Empire state manufacturing index. The latter is more important, expected to come out at 5.00. Any substantial level above that could boost the US dollar, however we believe that the move will be short lived.
Happy trading and have a great weekend!