Sorry, you need to enable JavaScript to visit this website.

GBP/USD Forecast 21 July 2016

You are here

GBP/USD Forecast 21 July 2016
5/5 of 1 ratings

On Wednesday the UK macroeconomic data came out better than expected and stopped the decline of the British pound.

In the UK, the unemployment rate fell from 5.0% to 4.9%, the forecast assumed unchanged level. In May, the average wage increased by 2.3% - as expected.

Today we expect weaker data from the UK. The retail sales are expected at -0.6% versus the previous 0.9%.

In the US Philadelphia Fed manufacturing index is expected to grow from 4.7 to 5.1 in June. The house price index could show growth by 0.4%. The existing home sales are expected to slightly lower, to 5.48 million against 5.53 million.

The pair GBP/USD can descend to the 1.31 area.

How to trade

We would buy call options if the pair GBP/USD rises above 1.3285. We would buy put options if the pair GBP/USD falls below 1.3200.

Expiry time: 20:00

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.

You may also read