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GBP/USD Forecast 27 July 2016

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GBP/USD Forecast 27 July 2016
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GBP/USD continues trading in a range of 1.3080 -1.3150.

In the UK the number of mortgage approvals dropped from 41.8K to 40.1K in June.

In the US new home sales increased to 572K for June. The Richmond manufacturing index jumped from --7 to 10. The CB consumer confidence lost 0.1 points, but still was better than the forecast.

Today we expect to hear a hint of a September rate hike in the accompanying letter of the FOMC. If this happens, the pair GBP/USD continues to decline.

Today the UK is to publish data on GDP for the 2nd quarter in the preliminary assessment.

In the US, the core durable goods orders are expected to grow from -0.3% to 0.3%. The pending home sales are expected to grow - forecast 1.4% against the previous decline -3.7%.

How to trade

We would buy put options if the pair GBP/USD falls below 1.31.

Asset: GBP/USD
Direction: Put
Target price: 1.3100
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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