April 17th, 2015 6:29am GMT, London UK
Today’s Binary Options Trading Strategy:
• Currency Pair: GBPUSD
• Timeframe: H4 (Hourly Chart)
• Binary Option Trading Recommendation: Seek binary put options on rallies above 1.4900
• Downside Potential: The downside potential for this binary put option is 335 pips to 1.4565
• Upside Potential: The upside potential for this binary put option is 100 pips to 1.5000The GBPUSD is nearing the end of a strong advance which emerged after this currency pair dropped to its current intra-day low of 1.4565 on April 13th 2015. The move to the upside took the GBPUSD to its intra-day high of 1.4970 which was reached yesterday on April 16th 2015. This level represents a lower high as compared to its previous intra-day high of 1.4972 recorded on April 8th 2015, its intra-day high of 1.4981 reached on April 8th 2015 as well as its intra-day high of 1.4994 recorded on March 26th 2015. A descending resistance level has formed as part of its bearish price channel which is increasing downward pressure.
Price action is currently trading inside of its horizontal resistance level which is being enforced by its descending resistance level. The GBPUSD is expected to move to the downside guided lower by its bearish price channel. Binary options traders can profit from the anticipated contraction with binary put options. Today’s binary options trading strategy suggests put options to be placed on rallies above 1.4900 for a risk/reward ratio of 1.0/3.35.
Volatility has decreased during the advance, but an increase in volatility is expected as the GBPUSD is trading at an enforced resistance level as well as inside of a bearish price channel which is exercising downward pressure on this currency pair. Buyers are likely to attempt a breakout above its enforced resistance level in order to challenge its intra-day high of 1.4994 recorded on March 26th 2015. An advance past this level is not anticipated. Sellers are favored to take the enforced resistance level and drift to the downside, assisted by its bearish price channel.
The GBPUSD will face its first support level at its intra-day low of 1.4812 which was reached on April 16th 2015. This level represents the low recorded prior to the spike into its enforced resistance level. A breakdown below this level will take the GBPUSD to its intra-day low of 1.4700 reached on April 15th 2015 from where this currency pair is likely to move into its descending support level around the 1.4650 mark. The final support level is located at its intra-day low of 1.4565 which was recorded on April 13th 2015.
The following economic data out of the United Kingdom is expected to impact the base currency, the British Pound, of the GBPUSD currency pair:
Jobless Claims and Claimant Count Rate for the month of March:
• Expectations: A contraction of 29,500 jobless claims is expected for the month of March, the claimant count rate at 2.3%
• Previous Report’s Data: A contraction of 31,000 jobless claims was reported in the month of February, the claimant count rate at 2.4%
• Impact on the British Pound: The expected contraction in jobless claims out of the United Kingdom is likely to be overshadowed by economic data out of the United Sates; this favors binary put options in the GBPUSD currency pair
In addition the following economic report out the United States is expected to impact the quote currency, the US Dollar, of the GBPUSD currency pair:
Leading Indicators for the month of March:
• Expectations: An increase of 0.3% is expected for the month of March
• Previous Report’s Data: An increase of 0.2% was reported in the month of February
• Impact on the US Dollar: The anticipated increase in leading indicators out of the United States is likely to apply upward pressure on the US Dollar which favors binary put options in the GBPUSD currency pair