Yesterday the pair GBP/USD showed an unexpected increase.
The pair received support after the publication of positive results on “Brexit” survey and the labor market. The average earnings + bonus increased by 2.0% vs. 1.7%. The jobless claims fell by 2,4K.
As a result, the pair GBP/USD was able to reach high of 1.4634. Then the FOMC meeting minutes made it clear that the June decision is still pending and will depend on the situation. The protocol only reinforced such the expectations.
Today the UK will present data on retail sales. The retail sales are expected to grow by 0.5% vs. a fall by 1.3% in the previous month. But this positive can be blocked by the aggressive speeches of two key figures of the FOMC speakers, William Dudley and Stanley Fischer. The US will also provide data on Philadelphia Fed Manufacturing Index, which is expected to increase by 3.5 against last fall by 1.6%.
How to trade
We expect the correction of the pair GBP/USD, after the rapid growth. We would buy put binary options if the pair falls below 1.4535.
Target price: 1.4535
Expiry time: 20:00 GMT