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GBP/USD Forecast 31 Mar 2016

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GBP/USD Forecast 31 Mar 2016
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GBP/USD is trading in price range

Yesterday the pair GBP/USD tried to strengthen on the soft Janet Yellen comments and in anticipation of the weak data from ADP. The pair could reach 1.4458 high.

However, ADP published positive data. Indicator went below the previous one, but exceeded the forecast: 200K vs. 199K forecast. As we know, the ADP is a harbinger of NFP. If ADP shows a good value, we can expect positive nonfarm payrolls data on Friday.

Today we expect the speech of the Bank of England head Mark Carney. As we remember, the last protocol of the Bank of England meeting stated that the next step will be to increase rates. However, the data tell opposite. Therefore, it will be interesting to know the opinion of the head of the bank. We will also know the UK GDP data for the 4th quarter, which is forecast unchanged.

The US traditionally is to publish data on jobless claims.

The mark 1.4447 provides a strong resistance for the pair GBP/USD. The level 1.4265 is the support for the level. Today, the dynamics of the pair will depend on Mark Carney and UK data.

How to trade

Today the pair GBP/USD may descend to the 1.4120 area. We would buy CALL options if the pair GBP/USD rises above 1.4390. We would buy PUT options if the pair GBP/USD falls below 1.43.

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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