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GBP/USD Forecast 26 July 2016

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GBP/USD Forecast 26 July 2016
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On Monday the market was calm.

In the UK the CBI industrial trades orders showed growth to -4 against the previous -2 while waiting -6.

Today in the UK, the BBA mortgage approvals are projected to decrease to 40.2K against the previous 42.2K.

In the US the expectations for the December rate increase increased to 49.2%. Tomorrow the Fed may give proof of this promise, regardless of their true intentions.

In the US, new home sales are expected at 560K in June against 551K in May. The services PMI is expected to grow 52.0 vs. 51.4 previously. The Richmond manufacturing index may rise from -7 to -4. The CB consumer confidence is expected to decrease from 98.0 to 95.6.

We continue to expect the decrease in the pair GBP/USD to the 1.2950 area.

How to trade

We would buy put options if the pair GBP/USD falls below 1.3075.

Asset: GBP/USD
Direction: Put
Target price: 1.3075
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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