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GBP/USD Forecast 24 May 2016

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GBP/USD Forecast 24 May 2016
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The cable shows uncertainty

Yesterday, as we expected the pair GBP/USD was showing a decline. However, the US Manufacturing PMI showed a decrease, 50.5 against the previous 50.8. This allowed the cable slightly to recover by the end of trading.

Yesterday, the Finance Minister George Osborne also expressed his concerns if the UK leaves the EU.

Today The UK won’t present important data. However, you should pay attention to the speech of Mark Carney in Parliament. The United States will present data on new home sales. The forecast is 523K vs. 511K in March.

How to trade

The pair will continue to move down if overcomes the range of 1.4445 - 1.4416. The short-term upward movement is possible if the pair GBP/USD overcomes 1.4502 - 1.4529. We would buy call options if the pair rises above 1.4502. We would buy put options if the pair falls below 1.4445.

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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