British Pound Binary Trades

Best Binary Options Brokers 2020:
  • BINARIUM
    BINARIUM

    Best Binary Broker 2020!
    Perfect for Beginners!
    Free Trading Education! Free Demo Acc!
    Get Your Sign-up Bonus Now:

  • BINOMO
    BINOMO

    Trustful broker.

British Pound Binary Trades

Sunday evening 15 pip gap up open followed by initial mostly sideways action. The highlighted pinbar doesn’t mean anything to me until the following fade downward, slow reverse & impulsive break of the Tenkan.

At that point I see the top of the pinbar as a likely magnet & resistance, and I look for entries close to the Tenkan (equilibrium) if it appears to be support. The white arrows mark my entry points for binaries that expire at the close of the following candle. I considered entries in the highlighted area 2 & 3 candles later but felt that there wasn’t enough room to the top of the pinbar.

The red, blue & green colors come from an indicator called Elder Impulse. Consider the following chart that illustrates the area of entries 2, 3 & 4 on a one-minute chart, as opposed to the five-minute chart I was trading.

Compare the two highlighted candles – the first is red & the second green even though they are roughly the same size & at the same price level & are both up candles. It’s pretty clear from a glance that the red candle is a possible pullback to roughly the midpoint of a move & that the green candle is a likely breakout, but the elder indicator doesn’t know that and still gets it right. It compares a moving average & a MACD Histogram for the current candle to those of the prior candle. If both are bigger or smaller the candle is green or red, else it’s blue. Moving averages & MACD Histograms are great indicators. This indicator combines them both in an intuitive & clear manner.

Trading GBP/USD

Trading the GBP/USD in the binary options market is not rocket science. It is a currency asset and just like other currency assets, it can be traded via technical analysis and fundamental analysis. In this article, we will show you how to use one or two fundamental analyses to produce trade results that work all the time specifically for the GBP/USD.

Trading GBP/USD Binary Options: Trade Setup 1

One of the ways to trade GBP/USD binary options is to use a fundamental news release specific to the GBP/USD, which is the UK Inflation Letter. This is a news release which is a letter written by the Bank of England Chairman Stephen King, to the House of Lords in England about the state of inflation in the UK and how this will affect the UK economy in the months to come.

In order to understand the fundamental basis of trading this news release, we need to look at how this piece of data has affected the value of the GBP/USD in the last few years, and the fundamental basis for this effect. In the last four years, the UK Inflation Report has not been favourable to the British Pound. The United Kingdom had its fair share of the housing market bubble which saw the government takeover one of the UK’s biggest mortgage lenders, Northern Rock. Over time, the economic contagion spread to the Eurozone which has now been shown to have been the economy that has been hardest hit by the global financial crisis. While the UK elected to stay out of the Eurozone and preserve its currency unit, the fact that the EU is the UK’s largest trading partner means that the UK has not been insulated from the economic happenings of the EU. It is a case of one person sneezing and the other catching a cold. This has left the inflation rate at all-time highs in the UK, and has meant that the UK economy has taken a beating from the EU woes.

The fact is that until the EU economy starts to show real signs of improvement, we will not see a favourable UK Inflation report for some time to come. This report is released quarterly and can be seen live on Bloomberg TV as it happens, giving the trader time to play this out on his binary options platform.

The Trade

The preferred trade for this report is a High/Low (Up/Down or Rise/Fall) trade. Obviously the bias would be for a Low (Down, Put, or Fall) outcome. Get to your trading platform five minutes before the start of the press conference, and immediately execute the option. The market price on entry is the price barrier. Set your trade expiry to anything between 15 to 30 minutes. We took this trade the last time it occurred and we got the result we were expecting. You can see the summary of this trade on the charts below.

Trading GBPUSD Binary Options: Trade Setup 2

Best Binary Options Brokers 2020:
  • BINARIUM
    BINARIUM

    Best Binary Broker 2020!
    Perfect for Beginners!
    Free Trading Education! Free Demo Acc!
    Get Your Sign-up Bonus Now:

  • BINOMO
    BINOMO

    Trustful broker.

Another market data release that greatly impacts the GBP/USD is the UK manufacturing data. This is a monthly release. This trade is not as straightforward as that of the Inflation Report. This is because the numbers vary; sometimes it is good and sometimes bad for the GBP. As such, you have to wait for the release of the news to the market before making a decision. To be on the safe side, it is preferable to trade a price barrier away from the direction of the news release as a No Touch trade.

Please practice these on demo before applying the strategies to a live account.

7 Binary Options

https://7binaryoptions.com/ The GBPUSD is a particular pair to trade since it seems to work in its own way. It is often referred to as “cable” for many reasons.

The Major GBPUSD Currency Pair

As the US, the British economy is also one of the top three economies in the world. The strengths of their economy are reflected as well on the Forex and binary options market where both currencies are classified as the most liquid currencies along with the euro.

The GBPUSD has a wider spread than EURUSD and is perfect for those who like scalping, and those who favour automated trading for their short timeframe trades. This pair is characterized by a bigger actual range (or tunnel trading) due to frequent movement. It is one of the most traded currency pairs in the world.

As binary options traders, or future traders of this particular currency pair, there are some factors which should be considered when trading GBPUSD. Pay attention to the following:

  • The GBPUSD pair mainly moves when the European and USD sessions are taking place since the European market is the most active then, so you should pay attention to trade during these sessions and avoid Asian markets trading times;
  • Try to trade especially when Retail Sales and the GDP news in the UK are released since they stimulate the movement of the GBP even more than usual. This news put the GBPUSD pair into the spotlight and that is when you should take action;
  • Take a peek into the economic calendar and observe the dates reserved for setting the interest rates, one of the major tasks of the central banks. The Bank of England is meeting on a monthly basis, whereas the Federal Reserve in the US meets every 6 weeks. This means that you should take a look at the at least once a month. Interest rates define the course of currency movements and are an important part of the monetary policies in each country.

News to be Watched in the UK

The GBP is one of the best known and most significant currencies on a global level. Big news releases have a tremendous effect on the GBP movement in the market.

The UK might be still a member of the EU, but it never used the euro as its currency but stayed loyal to its national Pound. The central bank in charge of the British monetary policy is the Bank of England which has the task to keep inflation a slow as 2%. The Bank relies on the Monetary Policy Committee (MPC) to check on inflation and economic activity in the UK every 30 days.

The UK keeps these meetings private as opposed to the European Central Bank, with the exception when interest rate changes are announced, then, the MPC publicly announces such events.

The movement of GDP in the financial market can also be intensively felt when the UK GDP news are released, whereby the preliminary results are as important as the end results since there are no significant changes added to the final version. Retail Sales and the Purchasing Manger Index (PMI) are also the kind of news that keeps the GDP moving. The PMI carefully examines economic activity by sector, i.e. construction, manufacturing, and the service sector. As a trader, do also not miss to check on the inflation or Consumer Price Index (CPI) which contributes to the GBP volatility in the fast market. The CPI is one of the key priorities of the Bank of England and this news actually accounts for the most aggressive price movement of the GBP.

Notable Economic News in the USA

As the world’s biggest economy, the USA has a lot of important news to share every month. The USA remains unbeaten when it comes to the economic status and as such, the US economy is significant beyond US borders as well.

Important news on US economy and relevant data for trading can be gathered from the jobs data issued by the Federal Reserve and the CPI referring to the inflation rate, as well as from the Institute for Supply Management (ISM), Retail Sales, GDP, and Manufacturing and Non-Manufacturing, Durable Goods Orders release, etc.

What is In for Traders in Economic Releases?

Since job growth is really turning the market upside down, prepare for major GBPUSD price movements upon Non-Farm Payrolls news in the USA and Claimant Count release in the UK as they represent a basis for the decisions that central banks of both power countries will take into account when defining their monetary policies. PMI and ISM news can also be useful since they reveal important service sector data like contradictory or expansionary conditions, as well as the status of manufacturing and construction sectors giving traders the opportunity to make an educated guess on what decisions will be made on the subsequent bank meetings.

The Federal Reserve’s Federal Open Market Committee holds regular meetings every six weeks and every 2 nd or 3 rd meeting is open for the press, whereby the USD experiences sudden movements causing fluctuations of other USD-related currencies as well, including, of course, the GBPUSD currency pair a swell.

Best Binary Options Brokers 2020:
  • BINARIUM
    BINARIUM

    Best Binary Broker 2020!
    Perfect for Beginners!
    Free Trading Education! Free Demo Acc!
    Get Your Sign-up Bonus Now:

  • BINOMO
    BINOMO

    Trustful broker.

Binary Options Trading School
Leave a Reply

;-) :| :x :twisted: :smile: :shock: :sad: :roll: :razz: :oops: :o :mrgreen: :lol: :idea: :grin: :evil: :cry: :cool: :arrow: :???: :?: :!: