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GBP/USD Forecast 2 June 2016

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GBP/USD Forecast 2 June 2016
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GBP/USD waits for NFP to determine its direction

Yesterday, the UK manufacturing PMI showed the growth by 50.1 against 49.4 in April. And as the results the pound began to grow, but the weak data on mortgage lending, which showed a decrease, made the pound descend.

The US data showed an increase. The ISM Manufacturing PMI rose by 51.3 against the expectations of 50.5. The construction spending went worse than forecast: -1.8% in April against 0.5% expected.

Today the UK is to publish data on the index of business activity in the construction sector in May, the forecast 51.9 vs. 52.0 in April. In the evening, Mark Carney, but his speech will not impact on the market. The US is to publish data non-farm employment change from ADP in May, the forecast 177-179K vs. 156K in April.

How to trade

The decline is expected after the price overcomes the noise range of 1.4394 - 1.4357, in this case, the target - 1.4254. The upward movement is possible in the range of 1.4481 - 1.4523. We would buy put options if the pair falls below 1.4394. We would buy call options if the pair rises above 1.4482.

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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