GBP/USD continues trading in a range of 1.3080 -1.3150.
In the UK the number of mortgage approvals dropped from 41.8K to 40.1K in June.
In the US new home sales increased to 572K for June. The Richmond manufacturing index jumped from --7 to 10. The CB consumer confidence lost 0.1 points, but still was better than the forecast.
Today we expect to hear a hint of a September rate hike in the accompanying letter of the FOMC. If this happens, the pair GBP/USD continues to decline.
Today the UK is to publish data on GDP for the 2nd quarter in the preliminary assessment.
In the US, the core durable goods orders are expected to grow from -0.3% to 0.3%. The pending home sales are expected to grow - forecast 1.4% against the previous decline -3.7%.
How to trade
We would buy put options if the pair GBP/USD falls below 1.31.
Target price: 1.3100
Expiry time: 20:00 GMT