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GBP/USD Forecast 16 June 2016

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GBP/USD Forecast 16 June 2016
5/5 of 4 ratings

Yesterday the pair GBP/USD was able to touch the mark of 1.42 due to the positive data on the labor market, which showed the rising inflation and the falling unemployment to near 11-year low.

However, Janet Yellen speech was the main event yesterday. Janet Yellen tried to confuse the market as much as possible, without giving any clear hints. She only made it clear that the rush to the tightening is not necessary.

Today the meeting of the Bank of England will be held and the minutes of the previous meeting will be published. They may indicate the intention of the Central Bank in the case of a negative result of the referendum. In the evening, the head of the Bank of England Mark Carney will have speech.

The US core CPI is expected unchanged 0.2%. Philadelphia Fed Manufacturing Index is forecasted at 1.1% vs. the previous -1.8.

The situation with the pair GBP/USD remains uncertain.

How to trade

We expect the downward movement of the pair GBP/USD to the lower limit of the range, 1.4090. We would buy put options if the pair decreases below 1.4150.

Asset: GBP/USD
Direction: PUT
Target price: 1.4150
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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