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GBP/USD Forecast 17 June 2016

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GBP/USD Forecast 17 June 2016
5/5 of 3 ratings

Yesterday, the cable reached a low of 1.4010 under the pressure from the Fed and the Bank of England. The pound lost 187 points, but then reversed.

Yesterday we received news that Brexit may be delayed. This gave support to the British pound, and the cable was able to recover and close the trading at 1.4198.

Today, the pair GBP/USD is trading above the yesterday's opening price. Perhaps the pound also gained support due to yesterday's data on the growth of retail sales, 0.9% in May. However, the US Philadelphia Fed Manufacturing Index rose from -1.8 to 4.7.

We can assume that after yesterday's events today we don’t get any surprises. Today, the US is to publish data on building permits, which suggests the growth.

It seems that today the pair GBP/USD will return to the usual range of 1.4090-1.4250.

How to trade

We would buy put options if the pair drops below 1.42.

Asset: GBP/USD
Direction: PUT
Target price: 1.4200
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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