June 12th, 2015 4:58 GMT, London UK
Today’s Binary Options Trading Strategy:
• Currency Pair: EUR/GBP
• Timeframe: H4 (Hourly Chart)
• Binary Option Trading Recommendation: Seek binary put options on rallies above 0.7240
• Downside Potential: The downside potential for this binary put option is 185 pips to 0.7055
• Upside Potential: The upside potential for this binary put option is 40 pips to 0.7280
The EUR/GBP has retreated from its most recent intra-day high of 0.7389 which was recorded on June 9th 2015. A steep, descending resistance level has applied downward pressure on this currency pair and assisted the corrective phase. The EUR/GBP is now trading at its ascending support level which originated from its intra-day low of 0.7055 reached on May 27th 2015. This level also marks the origin of the solid advance which took the EUR/GBP to its most recent intra-day high. The risk now remains to the downside and a great gateway to take advantage of from the expected contraction is virtual binary options trading.
Price action is currently trading at its ascending support level which is not expected to halt the current move to the downside. The EUR/GBP is anticipated to complete a breakdown below its ascending support level and accelerate to the downside. Binary options traders can profit from the expected continuation of the downtrend with binary put options. Today’s binary options trading strategy suggests put options to be placed on rallies above 0.7240 for a risk/reward ratio of 1.0/4.63.
The EUR/GBP was faced with a contraction in volatility which accompanied the move away from its intra-day high, but an increase in volatility is anticipated as price action is trapped in a narrow triangle formation. Buyers are likely to step in and attempt a reversal of the move to the downside in order to prevent a full corrective phase from developing. Sellers are favored to take the recent increase in downward pressure as a platform to successfully force a breakdown below its ascending support level from where the EUR/GBP can accelerate down into its horizontal support level.
The first support level awaits the EUR/GBP at its intra-day high of 0.7201 recorded on May 29th 2015. This level represents the high of a previous advance. A breakdown below this level will take the EUR/GBP to its intra-day low of 0.7150 which was reached on May 19th 2015. The next support level for this currency pair is set at its intra-day low of 0.7091 recorded on May 21st 2015 which marks the high end of its horizontal support level. The final support level is located at its intra-day low of 0.7055 which was reached on May 27th 2015.
The following economic data out of the Eurozone is expected to impact the base currency, the Euro, of the EUR/GBP currency pair:
Eurozone Industrial Production for the month of April:
• Expectations: A monthly increase of 0.4% is expected for April, an annualized increase of 1.1%
• Previous Report’s Data: A monthly contraction of 0.3% was reported in March, an annualized increase of 1.8%
• Impact on the Euro: The anticipated annualized slowdown in Eurozone Industrial Production is likely to pressure the Euro to the downside which favors binary put options in the EUR/GBP currency pair
In addition the following economic report out of the United Kingdom is expected to impact the quote currency, the British Pound, of the EUR/GBP currency pair:
Construction Output for the month of April:
• Expectations: A monthly increase of 0.1% is expected for April, an annualized increase of 0.5%
• Previous Report’s Data: A monthly increase of 3.9% was reported in March, an annualized increase of 1.6%
• Impact on the British Pound: The expected slowdown in the UK construction sector is likely to be overshadowed by economic data out of the Eurozone; this favors binary put options in the EUR/GBP currency pair