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GBP/USD Forecast 25 May 2016

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GBP/USD Forecast 25 May 2016
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The cable was able to strengthen significantly yesterday.

Yesterday, The Telegraph published the results of the new “Brexit” survey: 55% - to stay in the EU, 42% - to leave.

Also, the head of the Bank of England Mark Carney emphasized the preconditions for inflation in his speech. As a result, the pound added 150 points.

The US introduced the very strong data on new home sales, 619K vs. 523K. It’s the highest rate since October 2007. However, it didn’t put pressure on the pair GBP/USD.

The British pound will not receive any fundamental support to the end of the week. The United States will present data on the Services PMI, which is expected to increase from 52.8 to 53.1. Perhaps the pair GBP/USD will try to return to the area of 1.4520 by the end of the week.

How to trade

We continue to follow the upward movement from 16 May. The short-term upward movement is expected in the range of 1.4660 - 1.4703. The short-term downward movement is possible in the range of 1.4569 - 1.4529. We would buy call binary options if the pair rises above 1.4660. We would buy put options if the pair falls below 1.4569.

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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