GBP/USD – Technical Analysis for US Binary Options
United States – Existing Home Sales
On Wednesday, at GMT 3:00 p.m., the US National Association of Realtors will release the existing home sales number, which is the annualized number of residential buildings that were sold during the last month in the country. However, this figure excludes the number newly building constructions.
Since the sale of an existing home usually has a wide-spread positive ripple effect in the local economy, collectively this figure acts as an excellent leading indicator of the overall economic health of the country. Therefore, binary options traders consider the existing home sales number to be an important data as it tends to have a considerable market impact.
Last month, the US existing home sales figure came out at 5.71 million and the forecast for this month is currently set at 5.65 million.
United Kingdom – GDP Second Estimate
On Thursday, at GMT 9:30 a.m., the UK’s Office for National Statistics will release the quarter-over-quarter second estimate of the GDP, which measures the changes in the inflation adjusted value of all products and service made in the country over the past quarter.
Since GDP measures the overall productivity in the economy, the second estimate acts as a leading indicator of the actual GDP growth level. Hence, binary options investors consider the UK’s second estimate GDP (q/q) to be an important indicator of the health of the economy.
Last quarter, the second estimate GDP was at 0.3% growth and the forecast for this quarter is also set at an additional 0.3% growth.
Since forming a bullish pin bar on March 14, 2017, the GBP/USD has remained in a strong uptrend and the pair has climbed around 830 pips in the process. However, last week, after the GBP/USD reached near the 1.3050 level, it found a strong resistance and formed a Doji looking bearish bar. Currently, the GBP/USD is trading below the 1.3050 level.
As the UK’s second estimate GDP is expected to increase by 0.3%, but the US existing home sales figure is expected to come lower than last reporting period, we believe it would set a bullish fundamental outlook for the GBP/USD this week, which would likely help the pair to maintain the current uptrend. Therefore, if the GBP/USD price breaks above last week’s resistance around the 1.3050 level, it would likely attract additional bullish momentum in the market.
Hence, US binary options traders should look out for trading opportunities above this major resistance level around 1.3050.
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