GBP/USD May Turn Bullish After Testing Support Around 1.2850 Level

GBPUSD – Binary Options Technical Analysis.

United States – New Home Sales

Today, GMT 3:00 p.m., the United States Census Bureau will release the New Home Sales figure that measures the annualized number of new family homes sold during the last month.

Since the sale of a new home usually cause an increase in a wide ranging economic activity, such as sales of new furniture, new mortgage for the home, etc.; binary options traders always considered the New Home Sales figure to be a leading fundamental indicator of the US economy.

Last month, on a year-over-year basis, total 654,000 new homes were sold in the United States, and this month, the forecast is set at a slightly lower figure, at 598,000.

United Kingdom – Net Lending to Individuals

On Thursday, 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. Hence, binary options investors consider this data to be extremely important.

Last month, the last net lending to individuals figure came out at $3.8 billion and the forecast for this month is set at $4.0 billion.

Trade Recommendation for the GBPUSD

GBPUSD - Binary Options Analysis

Over the last three months, the GBP/USD has been consolidating within the range between 1.2850 and 1.3450. Earlier in September, the GBP/USD price once again got rejected around the 1.3450 level and started to gradually fall towards the 1.2850 level. Last week, the pair started a minor retracement, but ended up falling around 150 pips.

As the net lending to individuals figure is expected to go up by $0.2 billion to $4.0 billion this month and the new home sales figure is expected to fall to 598,000, the fundamental outlook for the GBP/USD would remain bullish. However, we believe there is a good chance that the GBP/USD would re-test the 1.2850 level prior to going further up.

Under the circumstances, it would be recommended that binary options traders consider placing a PUT order for the EUR/AUD with their binary options brokers as soon as the price touches the 1.2850 level on the daily time frame.

Top Binary Brokers to trade GBPUSD

Top US Broker: BinaryMate

US Regulated Broker: NADEX

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