Binary GBP/USD shows unexpected signs of weakness today. The binary indexes are steady and the greenback is appreciating against its peers and it is not so typical. However, it happens because the financial markets change the rules sometimes. This is provoked by the big institutions, as they are willing to achieve their goals and take the other traders’ money. That is why the binary traders should be very prudent when choosing the right expiry times and strikes for placing their orders.
Binary options on the underlying binary currency have been rising for the last 3 days adding some 200 pips to its value. It is worth mentioning that the binary options have completed a typical harmonic pattern called Bearish Cypher. It represents a reversal model comprising a combination of waves.
The first wave is drawn from 1.5720 to 1.5460. It has been retraced 38.2% at 1.5560. It is a typical Fibonacci percent for fast moves. The second wave from 1.5460 to 1.5560 has been expanded 141.40% at 1.5400. The third wave from 1.5560 to 1.5400 has been retraced 141.40% at 1.5660. The binary traders could realize in this example what is the meaning of 141.4% percent in trading. It is not the most typical level. However, it has a huge influence over the length of the wave in the chart models
The way down is wide open and the potential targets are 1.5560, followed by 1.5480.
The information in this analysis is collected from different sources and should serve for informative purposes only. The author shall not be held responsible for the validity of the presented information. No part of this analysis recommends the purchase or sale of a currency pair or any other financial instrument.