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GBP/USD Forecast 21 June 2016

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GBP/USD Forecast 21 June 2016
5/5 of 4 ratings

Over the past two weeks the Cable back to the beginning of this year, when the question of Brexit only started to rise.

In a case of a positive vote, anything will not change in the UK. And some huge volatility is unlikely to happen. Though psychological purchases will be, and we assume that the pound may rise even up to 1.4820-1.4900.

Today in the UK the CBI industrial trades orders can be reduced from -8 to -10 for this month, the public sector net borrowing is expected to increase from 6.6 billion to 9.5 billion pounds.

Janet Yellen speaks with the semi-annual report in the Congress. If Yellen is forced to admit that the rate increase is not planned or scheduled in the long term, it is possible the movement of the pound in the range of 1.4550-1.4670.

How to trade

The upward movement is possible when the price will overcome the noise range 1.4743 - 1.4805, in this case, the potential target is at 1.4888. The short-term downward movement is possible in the range of 1.4511 - 1.4408, then we see the high probability of reverse. We would buy put options if the pair falls below 1.4670.

Asset: GBP/USD
Direction: Put
Target price: 1.4670
Close price: 1.4627
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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