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GBP/USD Forecast 20 May 2016

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GBP/USD Forecast 20 May 2016
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The Cable got support due to strong data on retail sales, which added an impressive 1.3% vs. 0.5%.

The data for the previous month were also revised to increase that pushed the pair GBP/USD to 1.4646.

The cable continues to please investors. Despite the fact that in recent days the pair has shown rapid growth, it still has the potential for growth, and in the long term.

Commodity currencies of export-oriented economies are losing their positions. It seems that investors are looking for strong currencies. And now, the British pound has several supporting factors: the recent results of the survey that show the desire of Great Britain to stay in the EU, and the strong data on retail sales.

How to trade

On the hourly chart, the pair GBP/USD has the key levels: 1.4727, 1.4660, 1.4566. The continuation of upward movement is possible after the breakdown of 1.4660. The short-term downward movement is possible if the pair goes below 1.4566. We would buy call options if the pair rises above 1.4660. We would buy put options if the pair falls below 1.4566.

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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