November 25th 2014 6:30am GMT, London UK
Today’s Binary Options Trading Strategy:
• Currency Pair: EURGBP
• Timeframe: H4 (Hourly Chart)
• Binary Option Trading Recommendation: Seek binary call options on dips below 0.7920
• Upside Potential: The upside potential for this binary call option is 115 pips to 0.8035
• Downside Potential: The downside potential for this binary call option is 60 pips to 0.7860
The EURGBP experienced volatile trade over the past two trading weeks as this currency pair initially rallied from an intra-day low of 0.7802 which it reached on November 12th 2014 to an intra-day high of 0.8038 which was reached on November 19th 2014. The move higher was inspired by better than expected data out of the Eurozone. By the same token an unexpected comment out of the European Central Bank reversed the move higher, but recorded a higher low of 0.7901 on November 24th 2014 which allowed for an ascending support level to develop.
Price action is now trading inside its horizontal support level which has been intersected by its ascending support level formed due to its higher low. The EURGBP is expected to drift higher alongside its ascending support level until it will challenge its most recent intra-day high. Binary options traders can take advantage from the anticipated drift upwards with binary call options. Today’s binary options trading strategy suggests call options to be placed on dips below 0.7920 for a risk/reward ratio of 1.0/1.92.
Volatility is expected to increase as price action is currently located at a crucial level where buyers and sellers are anticipated to face off. Sellers are running out of time in order to extend the current move lower below its horizontal support level in order to challenge its intra-day low of 0.7802 reached on November 12th 2014. Buyers are favored to take the strength of the horizontal support level together with the ascending support level as a solid platform in order to resume its current drift higher until it challenges its intra-day high of 0.8038 reached on November 19th 2014 after a successful breakout above its descending resistance level.
The EURGBP will face its first resistance level at its intra-day low of 0.7955 which was reached on November 17th 2014. This level has previously halted a move lower and pushed the EURGBP into its most recent intra-day high from where the price action reversal originated. A breakout above this level will take this currency pair to its intra-day high of 0.8003 which was reached on November 21st 2014. The final resistance level awaits the EURGBP at its intra-day high of 0.8038 from where a double top formation may emerge and hinder a further advance.
The following economic data out of the Eurozone is expected to impact the base currency, the Euro, of the EURGBP currency pair:
German Gross Domestic product for the third-quarter of 2014:
• Expectations: An expansion of 1.2% is expected from the final reading of the third-quarter GDP out of Germany
• Previous Report’s Data: The previous report showed an annualized expansion of 1.2% for the third-quarter GDP
• Impact on the Euro: The expected stability out of the Eurozone’s largest economy may suffice to pressure the Euro higher; this favors binary call options in the EURGBP 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 EURGBP currency pair:
British Builders Association Loans for House Purchase for the month of October:
• Expectations: A reading of 38,500 is expected for the month of October
• Previous Report’s Data: A reading of 39,271 was reported in September
• Impact on the British Pound: The anticipated slowdown in the BBA Loans for House Purchase is expected to push the British Pound lower which favors binary call options in the EURGBP currency pair