Last week the pair GBP/USD tried to recover after a long decline.
The pair GBP/USD could reach the high of 1.3480 but closed the week at 1.3218.
The upcoming trading week will be poor of macroeconomic reports. However, it’s worth to pay attention to data on the US housing market. The recent statistics clearly pleased: the strong labor market data, the index of business activity in the industrial and service sectors, the good report on retail sales.
Today, there is no important macroeconomic data. The US is to publish NAHB housing market index. The forecast is unchanged. We expect the speech of BoE Monetary Policy Committee member on Brexit effects on monetary policy.
We expect reducing of the pair GBP/USD to the 1.3100 area.
How to trade
We would buy put options if the pair GBP/USD falls below 1.3176.
Target price: 1.3176
Expiry time: 20:00 GMT