GBP/USD Binary Call Option – April 9th 2015
GOption | Apr 09, 2015 07:00AM ET
• Currency Pair: GBP/USD
• Timeframe: H4 (Hourly Chart)
• Binary Option Trading Recommendation: Seek binary call options on dips below 1.4875
• Upside Potential: The upside potential for this binary call option is 290 pips to 1.5165
• Downside Potential: The downside potential for this binary call option is 135 pips to 1.4740 The GBP/USD is enjoying a drift to the upside from its current intra-day low of 1.4739 which was reached on April 1st 2015. This intra-day low represents a higher low as compared to its previous intra-day low of 1.4635, which was recorded on March 18 2015. An ascending support level emerged as a result and is supplying upward momentum for this currency pair. The advance reached an intra-day high of 1.4981 on April 6 2015 from where a descending resistance level has halted the drift to the upside. An increase in bullish momentum is now faced with an increase in bearish pressures.
Price action is currently trading above its ascending support level, but below its descending resistance level. The GBP/USD is expected to successfully breakout above its descending resistance level and challenge its price spike from March 18 2015. Binary options traders can take advantage from the anticipated breakout with binary call options. Today’s binary options trading strategy suggests call options to be placed on dips below 1.4875 for a risk/reward ratio of 1.0/2.15. The GBP/USD was exposed to a trading environment which featured a drastic contraction in volatility after the price spike from March 18th 2015, but an increase in volatility is anticipated as this currency pair is now trading in a narrowing triangle formation. Sellers are expected to pressure the GBP/USD below its ascending support level, but its most recent intra-day low is unlikely to be violated to the downside. Buyers are likely to attempt a breakout above its descending resistance level and accelerate back into its horizontal resistance level. This favors binary call options in the GBP/USD currency pair. The first resistance level, after a successful breakout above its descending resistance level, awaits the GBP/USD at its intra-day high of 1.4981 which was reached on April 6 2015. This level marks the high of its previous advance and is the only resistance level for the GBP/USD between its current level and its final resistance level of the expected advance. The final resistance level is located at its intra-day high of 1.5164 which was recorded on March 18th 2015. This level represents the high reached during the price spike post US Federal Reserve disappointment. 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:
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Bank of England Interest Rate Decision and Asset Purchase Target:
• Expectations: Interest rate at 0.50%, Asset Purchase Target at £375 billion
• Previous Announcement: Interest rate at 0.50%, Asset Purchase Target at £375 billion
• Impact on the British Pound: The accompanying statement is likely to give future guidance on a potential increase in interest rates or reduction in the Asset Purchase Target which favors binary call 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:
Initial Jobless claims for the week of April 4th 2015, Continuing claims for the week of March 28th 2015:
• Expectations: Initial jobless claims are expected at 283,000, continuing claims at 2,350,000
• Previous Report’s Data: Initial jobless claims were reported at 268,000, continuing claims at 2,325,000
• Impact on the US dollar: The expected increase in jobless claims as well as continuing claims is likely to pressure the US dollar to the downside; this favors binary call options in the GBP/USD currency pair
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