Consumer Confidence Index
Tomorrow, at 3 pm, the US-based conference (CB) will release the Consumer Confidence Index, which measures changes in the level of the composite index through a survey of 5,000 US households. The large sample size (5000) makes it one of the most comprehensive data and research on the consumer spending pattern in the country. As consumer confidence correlates with consumer spending, this prompts binary options investors to pay close attention to the CB Consumer Confidence Index.
Last month, the CB Consumer Confidence came in at 98.1 and expectations for the current month of February were set at 97.4.
United Kingdom - 2nd GDP Estimate
On Thursday, at 09:30 am GMT, the UK's Office for National Statistics will release its second quarterly GDP estimate, which measures changes in the inflation-adjusted value of all products and services provided in the country over the past quarter.
Where GDP measures the economy's overall productivity, the second estimate is a leading indicator of the level of actual GDP growth. Thus, traders consider the UK's second estimate of GDP to be an important indicator of the health of the economy.
Last quarter, the second estimate of GDP was at 0.5% growth and forecast for this quarter was also set at an additional growth of 0.5%.
Trading recommendations for the GBP/USD currency pair
Although the GBP/USD has been in a downtrend for a while, the pair started making a retracement movement on January 21, and rose to the 1,4600 level at the end of January. On February 16, the GBP/USD once again resumed the downtrend as it broke out and closed below the rising trend line that formed during the last bullish wave.
As a result of the rumors of a British exit in the United Kingdom, this has led to a weakening of the pound. As a result, the price of GBP/USD fell today and reached 1,4057 so far, the lowest level since 2009! The GBP/USD has found support around 1,4075 held in price so far, but if the pair closes below that level, it is likely to attract additional bearish momentum this week.
Under these circumstances, it would be advisable for binary options traders to consider placing a sell order for the GBP/USD with binary options brokers once the price closes below the 1,4075 level.