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GBP/USD Forecast 23 May 2016

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GBP/USD Forecast 23 May 2016
4.7/5 of 3 ratings

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

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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