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GBP/USD Forecast 19 May 2016

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GBP/USD Forecast 19 May 2016
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Yesterday the pair GBP/USD showed an unexpected increase.

The pair received support after the publication of positive results on “Brexit” survey and the labor market. The average earnings + bonus increased by 2.0% vs. 1.7%. The jobless claims fell by 2,4K.

As a result, the pair GBP/USD was able to reach high of 1.4634. Then the FOMC meeting minutes made it clear that the June decision is still pending and will depend on the situation. The protocol only reinforced such the expectations.

Today the UK will present data on retail sales. The retail sales are expected to grow by 0.5% vs. a fall by 1.3% in the previous month. But this positive can be blocked by the aggressive speeches of two key figures of the FOMC speakers, William Dudley and Stanley Fischer. The US will also provide data on Philadelphia Fed Manufacturing Index, which is expected to increase by 3.5 against last fall by 1.6%.

How to trade

We expect the correction of the pair GBP/USD, after the rapid growth. We would buy put binary options if the pair falls below 1.4535.

Asset: GBP/USD
Direction: Put
Target price: 1.4535
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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