Sorry, you need to enable JavaScript to visit this website.

GBP/USD Forecast 13 May 2016

You are here

GBP/USD Forecast 13 May 2016
5/5 of 2 ratings

The market's reaction was neutral after the publications of the Bank of England meeting minutes.

The Bank of England clearly explained Brexit that could have negative consequences for the UK economy.

Mark Carney said that Brexit can cause a recession and increase the inflation. Also, the BoE lowered its GDP forecast for this year from 2.2% to 2.0% and next year from 2.4% to 2.3%. The first rate hike can be possible in the middle of 2018.

In practice, this information complicates the path of the British pound to growth.
Today is an important day of the economic data. The United States will present data on retail sales. Core retails sales are forecasted to grow by 0.5%, PPI is projected to grow by 0.3%. The retails sales are forecasted to grow by 0.8% after the previous -0.4%. The Michigan Consumer Expectations are expected at 78.1.

How to trade

The short-term bearish movement is expected from 1.4385 to 1.4332. The short-term upward movement is possible in the range of 1.4465 - 1.4536. We would buy call binary options if the pair rises above 1.4465. We would buy put options if the pair falls below 1.4385.

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.

You may also read