GBP/USD Price Remained Tentative Following Better Than Expected UK CPI Data

United Kingdom – Consumer Price Index

Today, at GMT 8:30 a.m., the UK’s Office for National Statistics released the year over year Consumer Price Index (CPI) that measures the changes in the price of goods and services acquired by consumers.

Since the CPI basically measures the inflation level in the economy, this data is considered binary options traders as one of the most important leading indicators of the overall economic health in the country.

Last month, the UK’s CPI (y/y) increased by 0.3%, and this month the forecast was set at 0.3%. However, the actual figure came out much higher, at 0.5%. The high pace of inflation will certainly make the British policymakers to feel hawkish about the interest rate situation in their next meeting.

United States – Retail Sales

Tomorrow, at GMT 12:30 p.m., the US Census Bureau will release the national month-over-month retail sales figure, which measures the changes in the total value of all sales made at the retail level in the country over the past month.

Retail sales data are considered by binary options investors to be the primary gauge of consumer spending and confidence. This is because when consumers are confident about their future financial situation, they tend to spend more.

In March, the US retail sales value decreased by as much as 0.1% and the forecast for April is set at a slightly higher rate of increase in value, at 0.1%

Trade Recommendation for the GBP/USD

GBP/USD -Daily chart

After reaching 1.3835 at the end of February, the GBP/AUD price action mostly remained range bound. Over the last six weeks, the GBP/USD respected the support level around the 1.4075, which kept the price from declining further.

Today, the GBP/USD had a bullish beginning, as the UK’s CPI (y/y) came out much better than expected. However, since the London market opened, the GBP/USD price felt some bearish pressure and currently trading below the daily open price.

As the GBP/USD has remained in a range for the last several weeks, we believe there is a good chance that the price will go much higher towards the resistance around 1.4450 the level before going down.

Based on that hypothesis, it would be recommended that binary options traders consider placing a CALL order for the GBP/USD with their binary options brokers once the price closes above the 1.4315 level.

Recommended Broker for US traders: Finpari

New Broker: TropicalTrade

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