GBP/USD Downtrend Likely to Continue amid Forecast of Improving US Final GDP

United States – Final GDP

On Tuesday, at GMT 1:30 p.m., the US Bureau of Economic Analysis will release the quarter-over-quarter final GDP, which measures the annualized change in the value of all goods and services produced by the US economy over the last quarter.

Binary options traders consider the final GDP to be an important fundamental indicator of the US economy because it indicates how the overall economic activity measured up compared to the previous quarter.

Last quarter, the US final GDP increased by 0.8% and the forecast for this quarter is currently set at 1.0%.

United Kingdom – Net Lending to Individuals

On Wednesday, at GMT 9:30 a.m., the Bank of England will release the month-over-month net lending to individuals figure, which measures the changes in the total value of new credit issued to consumers in the past month.

Since consumer spending is highly correlated with consumer credit, the net lending to individuals figure can indicate future consumer spending as well as consumer confidence in the economy. This is because people only take on debt when they feel financially secure about future incomes.

Last month, the last net lending to individuals figure came out at $1.6 billion and the forecast for today is set at $2.9 billion.

Trade Recommendation for the GBP/USD

GBPUSDDaily

On June 23, as the Brexit results were coming out, the GBP/USD first climbed up and got rejected around the 1.5000 level, effectively helping big banks unload their pounds with a bull trap, then price plunged towards historical lows, around 1.3226. But, there was a temporary retracement during the unprecedented volatility.

Earlier today, the GBP/USD price fell another 315 pips, and the pair is currently trading at 1.3160.

As the US final GPD is expected to come out higher compared to the last reporting period, the fundamental outlook for the GBP/USD would likely remain bearish. Furthermore, unless there is a large scale profit taking by bears, there is a thin chance of any “dead cat bounce” scenario in the market as well.

Under the circumstances, it would be recommended that binary options traders consider placing a PUT order for the GBP/AUD with their binary options brokers as soon as the price closes below the 1.3125 level, which is last week’s low.

Recommended Brokers

Best Rated Broker for US traders: Finpari

Best Trusted Broker: GOptions

Tagged with:

Leave a Comment

All content, design, and layout are Copyright © 2013 - 2016. All Rights Reserved. USBinaryOptions.com is owned and operated by AD Entertainment, a company registered in England / Wales ( United Kingdom ).
About Us - Sitemap - Contact Us - Disclaimer- Terms & Conditions