Today’s Binary Options Trading Strategy:
• Currency Pair: EUR/GBP
• Timeframe: H4 (Hourly Chart)
• Binary Option Trading Recommendation: Seek binary put options on rallies above 0.7350
• Downside Potential: The downside potential for this binary put option is 335 pips to 0.7015
• Upside Potential: The upside potential for this binary put option is 150 pips to 0.7500
The EUR/GBP enjoyed a solid advance after an intra-day low of 0.7014 was reached on March 11th 2015. This intra-day also marks the origin of a steep ascending support level from its bullish price channel. The ascending resistance level was formed from an intra-day high of 0.7172 which was recorded on March 13th 2015. The steep bullish price channel has guided the EUR/GBP to the upside until it reached an intra-day high of 0.7385 yesterday on March 25th 2015. This intra-day high is located inside of its horizontal resistance level, but just outside of its bullish price channel.
Price action is currently drifting away from its most recent intra-day high as upward momentum is being deflated. The EUR/GBP is anticipated to break-in into its bullish price channel from where more downside is favored. Binary options traders can take advantage from the expected move to the downside with binary put options. Today’s binary options trading strategy suggests put options to be placed on rallies above 0.7350 for a risk/reward ratio of 1.0/2.23.
The EUR/GBP enjoyed a strong advance inside of its bullish price channel which additionally decreased volatility. An increase in volatility is expected as this currency pair is trading inside of a crucial horizontal resistance level. Buyers are likely to attempt a breakout in order to extend the recent gains while sellers are expected to pressure the EUR/GBP into a breakdown below its horizontal resistance level as well as below of its bullish price channel in order to accelerate to the downside. This favors binary put options in the EUR/GBP currency pair.
The first support level awaits the EUR/GBP at its intra-day high of 0.7326 which was reached on February 26th 2015. This level marks the low end of its horizontal resistance level as well as a breakdown below its steep bullish price channel. The next support level is set at its intra-day high of 0.7172 which was reached on March 13th 2015. This level marks the origin of its ascending resistance level. The final support level is located at its intra-day low of 0.7014 which was recorded on March 11th 2015 from where a double bottom formation may emerge.
The following economic data out of the eurozone is expected to impact the base currency, the euro, of the EUR/GBP currency pair:
German GfK Consumer Confidence Survey for the month of April:
• Expectations: A monthly reading of 9.8 is expected for April
• Previous Report’s Data: A monthly reading of 9.7 was reported in March
• Impact on the euro: The expected increase in the German GfK Consumer Confidence Survey is likely to be overshadowed by economic data out of the United Kingdom; this favors binary put options in the EUR/GBP currency pair
In addition the following economic report out of the United Kingdom is expected to impact the quote currency, the British pound, of the EUR/GBP currency pair:
Retail Sales for the month of February:
• Expectations: A monthly increase of 0.4% is expected for February, an annualized increase of 4.2%
• Previous Report’s Data: A monthly contraction of 0.7% was reported in January, an annualized increase of 4.8%
• Impact on the British pound: The anticipated increase in retail sales is likely to apply upward pressure on the British pound which favors binary put options in the EUR/GBP currency pair