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GBP/USD Forecast 21 Mar 2016

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GBP/USD Forecast 21 Mar 2016
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GBP/USD can’t overcome the level of 1.45

The pair GBP/USD had a successful week. Despite the fact that during the week the pair GBP/USD hit a low of 1.4096, it was able to complete the weekly trading at 1.4454. The pair GBP/USD demonstrated growth on a back of soft Fed comments and optimistic comments of the Bank of England.

The Bank of England stated about the growth productivity, the strengthening of the labor market that supports incomes and consumer demand. Also, the regulator has made it clear that his next step will likely be a rate increase.

Since one of the main risks to the UK economy remains low inflation, it’s worth pay attention to the data on the consumer price index, which will be published tomorrow. Investors expect that the consumer price index will grow by 0.4% compared to the previous 0.3%. If that happens, it will strengthen the British pound and the pair GBP/USD will try to rise to the level of 1.4570.

How to trade

Today, if the pair GBP/USD breaks below the level of 1.44, we would buy PUT options as we expect that the price will fall to the area of 1.4350.

Asset: GBP/USD
Direction: PUT
Target price: 1.4400
Close price: 1.4364
Expiry time: 21:00 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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