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GBP/USD Forecast 20 June 2016

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GBP/USD Forecast 20 June 2016
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On Friday, the British pound strengthened after the activation of agitation for the upcoming referendum.

This week we will learn if the United Kingdom remains in the European Union or wishes to leave it. Therefore, if it’s decided to retain membership in the European Union, the British pound may strengthen against the dollar.

At the weekend, the latest results of surveys on Brexit were published. They showed an increase in supporters to remain in the EU. However, the difference is minimal.

Prime Minister David Cameron also sharply increased the agitation to remain as the EU member. Now it is possible to assume that, regardless of the results of the voting, the UK will remain in the EU.

Today, the economic calendar is poor on the news. In the current situation, we do not think that the pair GBP/USD will demonstrate the strong growth. The pair is likely to trade in a range of 1.4550-1.4670 up to the referendum.

How to trade

The pair GBP/USD has the several key levels on the hourly chart: 1.4641, 1.4511. We expect a correction of the pair to the 1.4408 area. The upward movement is possible after the break of 1.4641. We would buy call options if the pair rises above 1.4641. We would buy put options if the pair falls below 1.4511.

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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