GBP/USD declines on a back of Brexit adherents growth
The pair GBP/USD is still under pressure as the number of Brexit adherents continues to grow. The pair GBP/USD could descend below 1.41, but the level of 1.40 provides sufficient support for the pair.
Yesterday the head of the St. Louis Federal Reserve Bank, James Bullard said that the rate can be raised in April. Philadelphia Fed President Patrick Harker also called for raising rates at the April Fed meeting. He expects to raise rates three times this year.
Today the UK is to publish data on retail sales. The forecast for the February retail sales suggests 0.7% decline, but the mortgage approvals may show growth from 47.5K to 47.8K.
Today, the US is to publish data on durable goods orders. However, forecast expects a decline by 0.2% compared to the previous growth of 1.7%. The US service PMI is expected to rise from 49.7 to 51.3 in the preliminary estimate for March. Recent polls have shown an increase in Brexit adherents to 43% against 41% who want to stay.
How to trade
Today, the pair GBP/USD may begin to consolidate in the range of 1.4050 - 1.4120. We expect a decrease to the 1.4050 area today, and then its further growth. We would buy CALL options after the pair GBP/USD pushes from the mark 1.4050 up.
Target price: 1.4050
Close price: 1.4151
Expiry time: 21:00 GMT