March 31st, 2015 5:12am GMT, London UK
Today’s Binary Options Trading Strategy:
• Currency Pair: GBPUSD
• Timeframe: H4 (Hourly Chart)
• Binary Option Trading Recommendation: Seek binary call options on dips below 1.4850
• Upside Potential: The upside potential for this binary call option is 420 pips to 1.5270
• Downside Potential: The downside potential for this binary call option is 215 pips to 1.4635The GBPUSD has stabilized inside of its horizontal support level after a violent corrective phase took this currency pair from its intra-day high of 1.5270 which was recorded on March 5th 2015 to an intra-day low of 1.4635 which was reached on March 18th 2015. This level represented a false breakdown below its horizontal support level which was sharply reversed amid a dovish US Federal Reserve. The price spike took the GBPUSD to a lower high at an intra-day high of 1.5164 which was recorded on March 18th 2015 and a descending resistance level emerged.
Price action is now trading back inside of its horizontal support level which is being enforced by its ascending support level. The GBPUSD is anticipated to move to the upside until it reaches its descending resistance level from where a breakout is likely. Binary options traders can benefit from the expected advance with binary call options. Today’s binary options trading strategy suggests call options to be placed on dips below 1.4850 for a risk/reward ratio of 1.0/1.95.
The GBPUSD saw volatility being deflated as a sideways trend emerged inside of its horizontal support level, but an increase is expected as price action is trapped inside of a narrowing triangle formation. Sellers are expected to keep the downtrend intact and pressure the GBPUSD into a breakdown below its enforced support level. The most recent intra-day low is not likely to be violated. Buyers are favored to push this currency pair into its descending resistance level from where upward momentum is anticipated to suffice for a breakout and further advance.
The first resistance level awaits the GBPUSD at its descending resistance level around the 1.4990 mark. This resistance level represents a crucial level for this currency pair and a breakout above it will clear the path for an advance to its intra-day high of 1.5164 which was reached on March 18th 2015. This level marked the high during the price spike after the US Federal Reserve statement. The final resistance level is located at its intra-day high of 1.5270 which was reached on March 5th 2015 from where a double top formation may emerge.
The following economic data out of the United Kingdom is expected to impact the base currency, the British Pound, of the GBPUSD currency pair:
Markit/CIPS Construction PMI for the month of March:
• Expectations: A level of 59.8 is expected for the month of March
• Previous Report’s Data: A level of 60.1 was reported in the month of February
• Impact on the British Pound: The expected reading in the Markit/CIPS Construction PMI may suffice to apply upward pressure on the British Pound which favors binary call options in the GBPUSD 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 GBPUSD currency pair:
Initial Jobless Claims for the week of March 28th 2015:
• Expectations: A level of 285,000 is expected for the week of March 28th 2015
• Previous Report’s Data: A level of 282,000 was reported in the week of March 21st 2015
• Impact on the US Dollar: The anticipated increase in initial jobless claims is likely to pressure the US Dollar to the downside; this favors binary call options in the GBPUSD currency pair