Sorry, you need to enable JavaScript to visit this website.

GBP/USD Forecast 28 June 2016

You are here

GBP/USD Forecast 28 June 2016
4.7/5 of 6 ratings

On the first trading day after the Brexit markets continued to fall.

The rating agency Standard & Poor's downgraded the sovereign rating of the United Kingdom from "AAA" to "AA" with the addition of the forecast "negative". This put pressure on the British pound.

But even this event may quickly be forgotten, as Moody's and Fitch Ratings have already downgraded the rating, the S&P just stating a Brexit.

Now the probability of rate increase by Fed according to the futures is not expected to the end of 2017 – the probability of the increase in December 2017 is 43%.

Today, the US is to publish data on GDP for the 1st quarter - is expected 1.0% against 0.8% in the last assessment. The index of business activity in the manufacturing sector of Richmond is expected 2 in June vs 1 in May. The consumer confidence from the Conference Board expects growth from 92.6 to 93.2.

Tomorrow Janet Yellen will have speech. Today we expect consolidation of the pair GBP/USD in the range of 1.3340-1.3904.

How to trade

The upward movement is possible in the range of 1.3495 - 1.3691. The downward movement is possible if the pair GBP/USD falls below 1.3119. We would buy call options if the pair rises above 1.3495. We would buy put options if the pair falls below 1.3119.

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.

You may also read