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GBP/USD Forecast 1 June 2016

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GBP/USD Forecast 1 June 2016
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The cable got pressure and sales after the new data on Brexit survey.

The results of the new survey on Brexit showed that 51% of respondents wish the UK remains in the EU. But the survey also showed an increase of wanting to leave the EU, 46% against the previous 42%. It pressured the pair and forced it to drop below 1.45.

Yesterday the US personal spending came out better than expected, 1.0% vs. 0.7% and the previous 0.1%. CB consumer confidence showed 92.6 vs. 96.0.

Today the UK will present data on Manufacturing PMI, forecast 49.6 vs. the previous 49.2. However, after yesterday's collapse, the hopes for growth have almost evaporated. The mortgage approvals are expected to decline too.

The US is to publish data on ISM Manufacturing PMI, forecast 50.4 vs. the previous 50.8. We think we can see the continuation of decrease to the 1.44 area.

How to trade

After yesterday's fall, the pair GBP/USD formed new important levels on the hourly chart: 1.4561, 1.4523, 1.4442. The downward movement is possible after passing the mark of 1.4442. The upward movement is possible in the range of 1.4523 - 1.4561. We would buy call binary options if the pair rises above 1.4523. We would buy put options if the pair falls below 1.4442.

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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