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GBP/USD Forecast 18 July 2016

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GBP/USD Forecast 18 July 2016
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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.

Asset: GBP/USD
Direction: Put
Target price: 1.3176
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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