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GBP/USD Forecast 24 June 2016

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GBP/USD Forecast 24 June 2016
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Yesterday, the Cable was able to reach 1.50 during the day. But today the Cable has lost 10% during the Asian session.

Yesterday the pair GBP/USD was demonstrating the growth until the close of trading. Then the markets began to wait for the first results from the British referendum. What happened next we can see on the chart.

Immediately after the closing of polling stations YouGov published their street poll: 52% - "remain", 48% - "leave", on this news the Pound has grown by 130 points.

The result of the voting in the city of Sunderland has caused the first shock. 61% of voters voted for the Brexit. The pair GBP/USD began a sharp decline. People from Northern Ireland and other regions sent the pound to new lows - less than 1.4000.

On the morning the balance was 48.8% to remain and 51.2% to leave. The pair GBP/USD was trading at 1.3500. An hour later, the results were even worse, and the pair reached 1.3340.

It is difficult to make any conclusions. First of all, it should be noted that the United Kingdom formally will be two more years in the EU. The Fed won’t increase the rate, and most likely, the ECB will be looking for a new QE - the fourth in a row.

Today the UK is to publish data on the BBA mortgage approvals, the forecast is 37,9K against the previous 40,1K. The United States will present data on the core durable goods orders, forecast 0.2% vs. the previous 0.5%. The Michigan consumer sentiment is also expected to decrease.

The pair GBP/USD can continue to decline to 1.3040.

How to trade

We would buy put options if the pair descends below 1.3343.

Asset: GBP/USD
Direction: Put
Target price: 1.3343
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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