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GBP/USD Forecast 12 May 2016

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GBP/USD Forecast 12 May 2016
5/5 of 3 ratings

The cable expects the Bank of England meeting today

The UK industrial production showed an increase by 0.3% vs. 0.5% in April. The manufacturing production showed an increase by 0.1% vs. 0.3%.

In April, the US budget surplus was lower than forecast: 106.5 billion against 116.2 billion dollars.

As a result, the pair GBP/USD peaked at 1.4488 but closed trading at around 1.4443.

Today the meeting of the Bank of England will be held. We will get the minutes of the meeting and hear the speech of Mark Carney. However, we tend to expect the soft comments from the head of the Bank of England today.

The United States will present data on the jobless claims, exports and imports data. It’s also worth to pay attention to the performance of two representatives of the Federal Reserve. We assume that they will be cautious in their statements.

How to trade

We expect the short-term downward movement in the range of 1.4419 - 1.4385. The short-term upward movement is possible in the range of 1.4462 - 1.4536. We would buy put options if the pair falls below 1.4419. We would buy call options if the pair rises above 1.4462.

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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