December 30th, 2014 6:15am 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 1.5530
• Upside Potential: The upside potential for this binary call option is 250 pips to 1.5780
• Downside Potential: The downside potential for this binary call option is 130 pips to 1.5400
The GBPUSD continues to struggle with renewed selling pressure after a drift to the upside and away from its intra-day low of 1.5486 recorded on December 23rd 2014 was reversed back inside its current horizontal support level. The drift higher carried this currency pair above its horizontal support level, but could not sustain the gains. Prior to recording its current intra-day low this currency pair developed a corrective phase from its intra-day high of 1.5786 which was reached on December 16th 2014. An ascending support level is likely to apply upward pressure on this currency pair.
Price action is currently trading inside its horizontal support level which is being enforced by its ascending support level. The GBPUSD is anticipated to use its enforced support level to launch an accelerated move to the upside. Binary options traders can take advantage from the expected move to the upside with binary call options. Today’s binary options trading strategy suggests call options to be placed on dips below 1.5530 for a risk/reward ratio of 1.0/1.92.
Volatility has been contained as the GBPUSD has formed its current horizontal support level, but could increase drastically as buyers enjoy a double support level while sellers are expected to attempt a breakdown in order to test its most recent intra-day low. Sellers are not likely to be able to force a breakdown below this level. Buyers are expected to launch a move to the upside with the assistance of both its horizontal support level and its ascending support level. This favors binary call options in the GBPUSD currency pair.
The GBPUSD will face its first resistance level at its intra-day high of 1.5586 which was reached on December 29th 2014. This level has previously halted a move to the upside and took the GBPUSD back down to its ascending support level. A breakout above this level will take the GBPUSD to its intra-day high of 1.5682 which was reached on December 19th 2014. This level has pushed the GBPUSD into its most recent intra-day low. The final resistance level is located at its intra-day high of 1.5786 which was reached on December 16th 2014 from where a double top formation could develop.
The following economic data out of the United Kingdom is expected to impact the base currency, the British Pound, of the GBPUSD currency pair:
Nationwide House Prices for the month of December:
• Expectations: A monthly increase of 0.2% is expected in December, an annualized increase of 7.2%
• Previous Report’s Data: A monthly increase of 0.3% was reported in November, an annualized increase of 8.5%
• Impact on the British Pound: The anticipated slowdown in UK house prices is likely to be overshadowed by the slowdown in the US housing market; this 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:
S&P/Case-Shiller Composite 20 Index for the month of October:
• Expectations: A monthly increase of 4.35% is expected in October
• Previous Report’s Data: A monthly increase of 4.90% was reported in September
• Impact on the US Dollar: The expected contraction in the growth rate for the S&P/Case-Shiller Composite 20 Index is likely to pressure the US Dollar to the downside which favors binary call options in the GBPUSD currency pair