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GBP/USD Forecast 24 Mar 2016

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GBP/USD Forecast 24 Mar 2016
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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.

Asset: GBP/USD
Direction: CALL
Target price: 1.4050
Close price: 1.4151
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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