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GBP/USD Forecast 11 May 2016

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GBP/USD Forecast 11 May 2016
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Yesterday the Cable managed to reverse and demonstrate growth

Since early May, the pair has showed a negative trend and managed to turn yesterday.

Tomorrow the Bank of England meeting will be held. It seems that we’ll hear quite soft comments, given the comprehensive reduction of business activity in all three sectors of the UK economy.

However, the quarterly inflation report is more interesting for us. It can already take into account the current increase in energy prices. If that happens, we can see the sale of the pair GBP/USD.

Today the UK is to publish data on industrial and manufacturing production. The prognosis is good, but we do not rule out that the data can be lower than expected. The industrial production is expected to increase by 0.4%. The manufacturing index is expected to growth by 0.3% compared to the previous -1.1%.

We will also get the forecast for UK GDP from NIESR.

How to trade

The pair GBP/USD has the key levels on the hourly chart: 1.4510, 1.4385, 1.4332. The short-term downward movement is possible in the range of 1.4420 - 1.4385.The short-term upward movement is possible in the range of 1.4485 - 1.4510. We would buy call binary options if the pair rises above 1.4510. We would buy put option if the pair falls below 1.4420.

Expiry time: 20:00 GMT

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.

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