Manufacturing activity in the U.K. improved in December, which continued to keep the EUR/GBP as the bottom end of the current range despite remaining in contraction territory for the third consecutive month below 50.
The report, from market research group Markit showed that its U.K. manufacturing PMI rose by 2.0 points to 49.6 in December from a reading of 47.7 in November, whose figure was revised up from 47.6. Analysts had expected the manufacturing PMI to ease down by 0.4 points to 47.3.
New export orders rose for the first time in five months in December, reflecting increased levels of new work from clients in Germany, East Europe and China. The UK like the US could be moving out of recession territory, and positive increases in PMI would reflect strong growth.
A technical close below the .83 level will trigger some down side stop losses and create a solid opportunity for binary options.
The trade – purchase a daily binary option put on a daily close below .8300.
Signal Summary
Asset : EUR/GBP
The trade : Binary Put Option
Expiry time : End of day
When : On a daily close below .8300.
Result : Trade expired in the money
