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GBP/USD Forecast 29 Apr 2016

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GBP/USD Forecast 29 Apr 2016
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The US GDP data for the 1st quarter disappointed investors

Yesterday's the US GDP data for the 1st quarter disappointed investors. Economic growth was 0.5% vs. 0.7% and 1.4% in the 4th quarter.

In Britain, the Nationwide house price index gained less than forecast, the growth amounted to 0.2% against 0.4%. These data helped the pound to strengthen yesterday.

Today, it is worth to pay attention to data on personal spending and income in the United States. Investors expect a small increase in income/spending in March. The incomes are expected to increase by 0.3% and the spending by 0.2%.

We expect growth of the pair GBP/USD to the 1.4750 area. Next week the United States will introduce a number lot of important reports: Ism index, factory orders, non-farm payrolls are expected to grow by 215K. The following week, we expect the market reversal.

How to trade

On the hourly chart, the pair GBP/USD has the several key levels: 1.4662, 1.4551, 1.4472. The short-term upward movement is possible in the range of 1.4662 - 1.4713. If the pair falls below 1.4551, we expect the beginning of the correction. We would buy call binary options if the pair rises above 1.4662. We would buy put options if the pair falls below 1.4551.

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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