October 9th 2014 4:47am GMT, London UK
Today’s Binary Options Trading Strategy:
• Currency Pair: GBPAUD
• Timeframe: H4 (Hourly Chart)
• Binary Option Trading Recommendation: Seek binary call options on dips below 1.8240
• Upside Potential: The upside potential for this binary call option is 430 pips to 1.8670
• Downside Potential: The downside potential for this binary call option is 200 pips to 1.8040
The GBPAUD has experienced a period of weakness as the British Pound came under pressure which led this currency pair away from its intra-day high of 1.8683 which it reached on October 1st 2014. The Australian Dollar has come under pressure as well which is likely to cause a reversal of the downtrend after the GBPAUD reached an intra-day low of 1.8222 which it reached today on October 9th 2014. This currency pair enjoys a double support level which puts upward pressure on the GBPAUD.
Price action is currently trading at a double support level, its horizontal support level and its ascending support level, from where a trend reversal is expected to take the GBPAUD back into its horizontal resistance level. Binary options traders can benefit from the anticipated move higher with binary call options. Today’s binary options trading strategy suggests call options to be placed on dips below 1.8240 for a risk/reward ratio of 1.0/2.15.
Volatility has decreased once the GBPAUD finished its corrective which was stopped by its double support level. Buyers have taken this as a platform to drift higher and the drift higher is expected to develop into a longer lasting upward move until it reaches its next solid horizontal resistance zone. Sellers have forced a breakdown below its ascending support line, but this move is expected to be short-lived and should be taken as a better entry opportunity into GBPAUD binary call options.
The next resistance level awaits the GBPAUD at the 1.8460 level which is an intra-day high reached on October 3rd 2014 and represents a level from where the latest part of the move lower originated. A successful breakout above this level will take the GBPAUD to its intra-day high of 1.8554 which it reached on September 23rd 2014 and this level has also previously been able to put downward pressure on this currency pair. The final resistance level awaits the GBPAUD at its intra-day high of 1.8683 which it reached on October 1st 2014.
The following economic data out of the United Kingdom is expected to impact the the base currency, the British Pound, of the GBPAUD currency pair:
Bank of England Interest Rate and Asset Purchase Target Decision:
• Expectations: The Bank of England is expected to keep interest rates unchanged at 0.50% while the Asset Purchase Target is expected to remain unchanged at £375 billion
• Previous Announcement: The Bank of England kept interest rates unchanged at 0.50% and did not alter the Asset Purchase Target from its £375 billion level
• Impact on the British Pound: No change is expected when it comes to interest rates or the Asset Purchase Target, but comments on a potential interest rate increase could rally the British Pound which favors binary call options in the GBPAUD currency pair
In addition the following economic report out of Australia already impacted the quote currency, the Australian Dollar, of the GBPAUD currency pair:
Employment Report for the month of September:
• Expectations: A gain of 15,000 jobs was expected for September and an increase in the unemployment rate to 6.1%
• Previous Report’s Data: An increase of 32,100 jobs was reported in August with an unemployment rate of 6.0%
• Released Data: A contraction of 29,700 jobs was reported in September with an unemployment rate of 6.1%
• Impact on the Australian Dollar: The contraction in the Australian labor market failed to pressure the Australian Dollar lower, but data out of the United Kingdom is expected to drive the British Pound higher; this favors binary call options in the GBPAUD currency pair