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GBP/USD Forecast 18 Apr 2016

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GBP/USD Forecast 18 Apr 2016
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Cable is trading under pressure

On Friday, the US industrial production data disappointed investors and didn’t allow the dollar to continue the strengthening. The March volume of industrial production fell by 0.6% vs. the expectation of 0.1%.

In the UK construction sector lost 0.3% in February instead of expected zero change. In Qatar, the oil producers haven’t made any agreements on reducing the oil production volumes. So OPEC members will continue to increase volumes and to struggle for markets.

Today, the UK calendar is empty. The head of the US Federal Reserve Bank of New York U.Dadli will have speech. Then we get the NAHB housing market index data.

How to trade

On the hourly chart, the pair GBP/USD has the key levels: 1.4289, 1.4178, 1.4113 and 1.4004. We continue to monitor the formation of the rising structure from 6 April. If the Cable manages to drop below 1.4113, we should buy put binary options. If the pair rises above 1.4189, we should buy call options.

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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