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GBP/USD Forecast 25 July 2016

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GBP/USD Forecast 25 July 2016
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On Friday, the British Manufacturing PMI fell from 52.1 to 49.1. The Services PMI fell from 52.3 to 47.4.

The US Manufacturing PMI showed an increase from 51.3 to 52.9.

Today the balance of the CBI industrial orders for the current month is expected to decrease from -2 to -6 in the UK.

The coming week will be very interesting. The US is to publish data on new home sales and consumer confidence from the Conference Board, as well as a report on orders for durable goods.

Recently, the market has experienced relative certainty about the stability of the US economy. However, on Wednesday the Fed's decision will be published. Most likely, the regulator will refrain from any actions, because now it is still necessary to evaluate the possible consequences of the Brexit. However, the market will closely follow the comments of officials.

How to trade

We would buy put options if the pair GBP/USD falls below 1.3094. We would buy call options if the pair rises above 1.32.

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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