UK GDP May Have Major Influence On FTSE, GBP/USD
Binary Options Strategy | Mar 31, 2015 06:18AM ET
Looking at the Tuesday session, there’s very little to get us excited with the exception of the GDP numbers coming out of the United Kingdom. This of course can have a major influence on the FTSE, as well as the GBP/USD pair. Ultimately, we believe that the rest of the day will be technically driven at best.
We believe that the FTSE is starting to find a little bit of support during the session on Monday, and therefore we also believe that it could be a nice call buying opportunity. If we break the top of the range from Monday, we believe that the market will then head to the 6950 handle, and that short-term pullbacks should be call buying opportunities. This will be especially true if the GDP numbers out of London are fairly strong.
FTSE
The GBP/USD pair continues to meander around the 1.48 level, but we recognize that the 1.50 level above is massively resistive. Because of this, we are looking for short-term rallies in order to buy puts as the US dollar continues to be the favored currency around the world. With that, we are on the sidelines and waiting for an opportunity to express our bearish opinion.
Silver fell during the session on Monday, and it now looks ready to test the 16.50 handle. That area should be supportive, but if we can break below there we feel that the market should then head to the 15.50 level. We believe that any type of support near the 16.50 level should be an opportunity to buy calls though, so we are waiting to see which way this market decides to break. If we find support at the16.50 level, we believe that the market then heads to 17.50 next.
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