GBP/USD Finds Strong Resistance Around the 1.5800 Level

United Kingdom – Nationwide House Price Index

On Thursday, at GMT 6:00 a.m., the Nationwide Building Society in the United Kingdom will release the Nationwide House Price Index (HPI) ,which measures the changes in the selling price of homes with mortgages backed the Nationwide bank.

Since rising house prices indicate that investors are confident about purchasing houses and vice-versa, it can binary options traders consider the HPI to be a leading indicator of investor confidence in the United Kingdom

On August 4, the UK’s HPI suggested that house prices in the country have increased by 0.4% and the forecast for this week is set an additional increase of 0.4%.

United States – Unemployment Claims

Later in the day, at GMT 12:30 p.m., the US Department of Labor will release the unemployment claims figure, which measures the changes in the number of people who claimed for unemployment insurance over the last week.

Binary options traders consider the unemployment claims data to be one of the most important fundamental indicators of the US job market. This is primarily because unemployment and consumer spending has direct correlation and an increasing number of unemployment claims indicate lower consumer spending in the economy, which makes up the bulk of the economic activity in the United States.

Last week, the US unemployment claims figure came out at 277,000 and the forecast for this week is currently set at a slightly lower figure, at 275,000.

Trade Recommendation for the GBP/USDGBPUSDDaily

Since reaching near the 1.5175 level on June 1, the GBP/USD price has been mostly range bound, but managed to form a bullish uptrend trend line over the last two months.

On August 7, the GBP/USD price tested this uptrend line, but the support around the 1.5450 level was strong enough to bounce the price. As a result, it went up to re-test the resistance zone around 1.5675 once again.

After several try, on August 20, the GBP/USD price finally formed a Doji shaped bullish outside bar, that closed above the 1.5675 level, and the subsequent penetration of the high of this the following day confirmed the bullishness.

As the equity market collapsed in the United States on Monday, the GBP/USD gained bullish momentum and gained around 170 pips.

Earlier today,during the Asian session, the GBP/USD price penetrated the high of yesterday’s daily bar, but found strong resistance around the 1.5800 level. Today, if the pair closes below yesterday’s high, it would effectively form a bearish pin bar.

Under such circumstances, it would be recommended that traders consider placing a PUT order for the GBP/USD with their binary options brokers once it forms a bearish pin bar, and price penetrates below the low of this pin bar.

However, if the GBP/USD price closes above the 1.5800 level, it would have a higher probability to continue the uptrend. In that situation, binary options traders may consider placing a CALL order with this pair.

Recommended Broker: Cherry Trade

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