Put Options Recommended As GBP/USD Dips On Improvement In US Jobs Market
Jun, 10th 10:16
Sterling remains soft against the US dollar on Friday, as markets turn a blind eye toward data showing the UK’s trade balance was in a deficit of £10.53 billion in April, beating forecasts of £11.20 billion, and UK exports grew by the largest monthly amount since the first quarter of 2010. Meanwhile, the greenback was supported by an unexpected drop in US jobless claims and a stronger-than-expected rise in wholesale sales in April, which soothed some concerns about the US economy decelerating in the second quarter. The US dollar index was up 0.54% at 94.095. On the hourly chart, the pair was last seen trading at 1.44455. RSI (14) of 36.83 is approaching the oversold territory. Parabolic SAR keeps signaling strong bearish momentum, with the parabolics band still above the current price and the red trend indicator arrow pointing downward. GBP/USD is expected to test the support at 1.44039 before bouncing back.
Buy Digital Put Option from 1.44039 to 1.44900 valid until 20:00 June 10, 2016