June 18th, 2015 4:58 GMT, London UK
Today’s Binary Options Trading Strategy:
• Currency Pair: GBP/USD
• Timeframe: H4 (Hourly Chart)
• Binary Option Trading Recommendation: Seek binary put options on rallies above 1.5830
• Downside Potential: The downside potential for this binary put option is 660 pips to 1.5170
• Upside Potential: The upside potential for this binary put option is 170 pips to 1.6000
The GBP/USD has enjoyed a strong advance inside of its bullish price channel which took this currency pair from its horizontal support level to its horizontal resistance level. The ascending support level of its bullish price channel can trace its origin to its intra-day low of 1.5175 which was recorded on June 5th 2015; this level marked a slightly higher low as compared to its previous intra-day low of 1.5170 reached on June 1st 2015. The ascending resistance level originated from its intra-day high of 1.5363 which was recorded on June 2nd 2015.
Price action is now trading inside of its horizontal resistance level which is being intersected by its bullish price channel. The GBP/USD is expected to drift down to its ascending support level from where a breakout is favored. Binary options traders can profit from the anticipated breakdown with binary put options. Today’s binary options trading strategy suggests put options to be placed on rallies above 1.5830 for a risk/reward ratio of 1.0/3.88.
The GBP/USD saw volatility contract as it advanced inside of it bullish price channel, but the emergence of its horizontal resistance level is anticipated to lead to an increase in volatility. Binary option traders with access to the best option trading platforms can take advantage from the likely move to the downside in this currency pair. Buyers are expected to attempt an extension of the advance and pressure the GBP/USD to the upside. Sellers are favored to push this currency pair to its ascending support level from where enough downward momentum is likely to lead to a breakdown.
The first support level awaits the GBP/USD at its ascending support level around the 1.5700 mark which is located just below its horizontal resistance level. A breakdown below this level will clear the path down to its intra-day low of 1.5460 reached on May 22nd 2015. This level represents the low of a previous spike to the downside. The next support level is set at its intra-day low of 1.5223 which was recorded on June 1st 2015 and marks the top end of its horizontal support level. The final support level is located at its intra-day low of 1.5170 reached on June 1st 2015.
The following economic data out of the United Kingdom is expected to impact the base currency, the British Pound, of the GBP/USD currency pair:
Retail Sales for the month of May:
• Expectations: A monthly contraction of 0.2% is expected for May, an annualized increase of 4.3%
• Previous Report’s Data: A monthly increase of 1.2% was reported in April, an annualized increase of 4.7%
• Impact on the British Pound: The expected monthly contraction in retail sales is likely to pressure the British Pound to the downside which favors binary put options in the GBP/USD currency pair
In addition the following economic report out of the United States is expected to impact the quote currency, the US Dollar, of the GBP/USD currency pair:
Consumer Price Index for the month of May:
• Expectations: A monthly increase of 0.5% is expected for May, an annualized increase of 0.1%
• Previous Report’s Data: A monthly increase of 0.1% was reported in April, an annualized contraction of 0.2%
• Impact on the US Dollar: The anticipated monthly as well as annualized increase in the CPI is likely to apply upward pressure on the US Dollar; this favors binary put options in the GBP/USD currency pair