The overvalued British pound, which we forecasted a decline, finally began to descend on Friday.
On Friday, the British pound lost 97 points.
In the US, the existing homes sales grew from 5.36 million (revised from 5.33 million) to 5.45 million in April.
Today the US present data on Manufacturing PMI data. Also, it’s worth to pay attention to the speech of the FOMC member Bullard. The Great Britain has an empty economic calendar today.
How to trade
The pair GBP/USD has the several important levels on the hourly chart: 1.4586, 1.4536, 1.4478. Here the price is in a deep correction. The pair can resume its growth if it rises above 1.4586. Also, the pair may consolidate in the range of 1.4536 - 1.4478. If the pair breaks the level of 1.4478 down, it will continue to decline. We would buy call options if the pair rises above 1.4586. We would buy put binary options if the pair falls below 1.4478.
Expiry time: 20:00 GMT