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GBP/JPY binary signal - UK manufacturing data - 10 Nov 2017

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Signal details
Entry Price: 
149.50
Close Price: 
149.83
Direction: 
Call
Expiry Time: 
21:00 GMT
Result: 
ITM
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The UK's industrial and manufacturing production data will be released today at 0930 GMT. According to the economists polled, manufacturing production in the region is expected to rise 0.3% on a month over month basis. This is a slightly slower pace of increase compared to the 0.4% gains seen the month before. The industrial production is however expected to rise 0.3% on the month which would see some slight gains coming up following a 0.2% increase from the previous month.

In the UK, both industrial and manufacturing production have weakened over the past few months. This came amid the initial surge in manufacturing which was largely due to the decline in the exchange rate of the British pound. This was due to the Brexit related event that pushed the currency to fresh historic lows.

While the weaker exchange rate made UK goods more competitive, the rising inflation quickly managed to offset any advantages that came due to the weaker currency. As a result, UK's manufacturing and industrial production figures continued to gradually weaken. Latest PMI data showed a mixed picture with the activity in the manufacturing sector seen to be volatile. However, compared to other sectors, the manufacturing activity continued to post an expansion.

The UK's construction output data is also expected today at the same time. Economists are forecasting a decline of 0.6% on the month. This would potentially offset the 0.6% gains seen in the previous month. Construction activity was majorly affected in recent months with the forward looking construction PMI even posting a decline.

As a result, today's economic data could come out mixed with manufacturing or industrial production likely to beat estimates. Based on the above, today's forex binary signal is GBPJPY. The currency pair has been trading flat over the past few sessions. However, the bullish outlook is building up as we expect GBPJPY to break out above 149.50.

Therefore, we would purchase daily CALL options at 149.50 for a 21:00 GMT expiry time. Following the breakout above this level GBPJPY is expected to close higher on the day.

binary options signal gbpjpy 10 Nov 2017

Disclaimer: The article is written for informative purposes only and it is not financial advice. The author does not have any position in the currency pairs mentioned, and no plans to initiate a position. He wrote the article himself and expressed his own opinions. He has no business nor personal relationships with any mentioned government entities or stocks. Readers should not treat any opinion expressed by the author as a specific inducement to make a particular trade or follow a particular strategy, but only as an expression of his opinion.