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GBP/USD Forecast 19 July 2016

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GBP/USD Forecast 19 July 2016
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Yesterday the market was calm. The pair GBP/USD was traded in a narrow range.

However, a member of the Monetary Policy Committee of the Bank of England expressed his doubts in the August monetary policy change. But investors did not react to it.

Now the waiting for the Fed raising rates has a far greater impact on the market. The probability of the December is 45.5%.

Today the UK will present data on the consumer price index. It’s expected an increase from 0.3% to 0.4%, the core CPI is expected from 1.2% to 1.3%. The producer prices are expected to increase by 0.1%.

The US is to publish data on the number of housing starts in June which may reach 1.17 million against 1.16 million in May, the number of buildings permits is projected at 1.15 million against 1.14 million previously.

We expect the pair GBP/USD near 1.3100.

How to trade

We would buy put options if the pair GBP/USD falls below 1.32.

Asset: GBP/USD
Direction: Put
Target price: 1.32
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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