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GBP/USD Forecast 12 July 2016

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GBP/USD Forecast 12 July 2016
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The British pound got support when it became clear who will be the next Prime Minister of Britain.

Yesterday it became known that the new Prime Minister of Great Britain will be the interior minister Theresa May.

She confirmed that Brexit will finally take place, but promised to "unite the whole country."

As a result, the British pound added 43 points. Today during the Asian session pound adds another 90 points.

Today a meeting of a special committee of the Treasury on the report on financial stability will be held, where the head of the Central Bank Mark Carney will speak. The general opinion of the market is that at the next meeting of the Bank of England the rate will be reduced from 0.5% to 0.25%. Also, the new QE program will be announced.

If Mark Carney ignores this question, the pair GBP/USD could rise to the area of 1.32. If the Bank of England decides to postpone the rate cut or a lower rate without QE, the pair also will show the growth.

How to trade

We would buy call options if the pair rises above 1.31. We would buy put options if the pair falls below 1.3035.

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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