December 12, 2014 4:50am 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 0.7890
• Upside Potential: The upside potential for this binary call option is 140 pips to 0.8030
• Downside Potential: The downside potential for this binary call option is 55 pips to 0.7835
The EURGBP has caught an orderly drift to the upside which was assisted by its ascending support level. The ascending support level was created amid a series of higher lows during a short and volatile trading period over the past eight trading days. The drift higher developed after the EURGBP recorded its most recent intra-day low of 0.7832 on December 3rd 2014. This currency pair has previously endured a prolonged move to the downside after reaching its intra-day high of 0.8038 on November 19th 2014.
Price action is now trading just below its horizontal support area which is being intersected by its ascending support level. The EURGBP is likely to take its ascending support level for an attempted breakout and advance in order to challenge its most recent intra-day high. Binary options traders can take advantage from the anticipated move to the upside with binary call options. Today’s binary options trading strategy suggests call options to be placed on dips below 0.7890 for a risk/reward ratio of 1.0/2.55.
The EURGBP is expected to witness a sharp increase in volatility as price action is trapped inside a triangle formation. This triangle formation is comprised of its descending resistance level which has halted two previous attempts of a breakout and its ascending support level which has assisted the current drift to the upside. Sellers may attempt to force a breakdown below its ascending support level which is likely to be limited to its intra-day low of 0.7832 recorded on December 3rd 2014. Buyers are favored to succeed with a sustained breakout above its descending resistance level and challenge its most recent intra-day high.
The first resistance level, after a successful breakout, awaits the EURGBP at its intra-day high of 0.7954 which was reached yesterday on December 11th 2014. This level has pushed the EURGBP back down into its ascending support level. A breakout will take this currency pair to its intra-day high of 0.7977 which was reached on December 1st 2014. This marks the last time the EURGBP touched its descending resistance level before accelerating to the downside. The final resistance level is located at its intra-day high of 0.8038 which was reached on November 19th 2014 from where a double top formation is possible.
The following economic data out of the Eurozone is expected to impact the base currency, the Euro, of the EURGBP currency pair:
Eurozone Industrial Production for the month of October:
• Expectations: A monthly increase of 0.2%, an annualized increase of 0.7%
• Previous Report’s Data: A monthly increase of 0.6% was reported in September, an annualized increase of 0.6%
• Impact on the Euro: The anticipated increase in annualized industrial production out of the Eurozone is likely to provide upward pressure on the Euro which 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:
Construction Output for the month of October:
• Expectations: A monthly increase of 0.7%, an annualized increase of 1.3%
• Previous Report’s Data: A monthly increase of 1.8% was reported in September, an annualized increase of 3.5%
• Impact on the British Pound: The expected slowdown in construction output out of the UK is anticipated to pressure the British Pound to the downside ; this favors binary call options in the EURGBP currency pair