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GBP/USD Put Signal 10 Dec 2015

Signal details
Entry Price: 
1.5170
Close Price: 
1.5160
Expiry Time: 
21:00 GMT
Result: 
ITM
How we trade
5/5 of 2 ratings

The GBP/USD has suffered a decline towards 1.5110, only to subsequently rebound back up towards 1.5180. The main cause for the downside pressure was the announcement by the Bank of England that the rates of inflation and wage growth are slowing down. The central bank has been perceived as less likely to raise rates and the GBP/USD dropped.

We are interested in buying daily put options around current levels of 1.5170, because we see the market as very likely to pull back after yesterday's substantial rally. The Bank of England is likely to stay on the sidelines, opening the door for the British pound to decline, as inflation pressures are being subdued by lower oil prices.

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.