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GBP/USD Forecast 27 June 2016

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GBP/USD Forecast 27 June 2016
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The British referendum results have surprised everyone, as the EU supporters and fans of the Brexit.

On Friday, the pound lost around 1193 points.

The process of formal separation will take at least two years. Some EU countries have already managed to declare that they would try to conclude additional trade agreements with the United Kingdom as soon as possible, replacing the EU "collective agreement".

Scotland announced the second referendum to leave the United Kingdom and to enter the part of the European Union.

Tomorrow the US will present data on the GDP. The forecast is 1.0% against 0.8% in the previous estimate. The forecast for the 2nd quarter is 2.6%. On Wednesday the United States will present the data on private consumer spending in May, it’s expected the growth of 0.3%.

We expect calmness of the foreign exchange market. The pair GBP/USD will trade in a wide range 1.3340-1.3940. We recommend waiting for the next price growth up before the medium-term sales.

How to trade

The pair GBP/USD has the key levels on the hourly chart: 1.3593, 1.3498, 1.3380, 1.3340. We expect the continuation of upward movement after the breakdown of 1.3815. The downward movement is possible after the breakdown of 1.3340.We would buy put options if the pair falls below 1.3340. We would buy call options if the pair GBP/USD rises above 1.3815.

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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