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GBP/USD Forecast 4 July 2016

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GBP/USD Forecast 4 July 2016
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The British pound will remain under pressure as uncertainty regarding the further presence of the UK in the EU has not disappeared.

The cable, despite the strong growth of Manufacturing PMI from 50.4 to 52.1, decreased by 44 points.

The British pound still reacts to the comments of Mark Carney's to launch a new round of quantitative easing.

Today, the US celebrates the Independence Day.

Despite the macroeconomic weakness of the pound, it has a chance to grow. Tomorrow the Bank of England publishes a report on financial stability and the head of the BoE Mark Carney will have speech.

Notwithstanding the foregoing statement of the easing, the situation can be optimistic. Also tomorrow the US will present data on factory orders which are projected to decline by 0.7%.

Thus, the pound can move in the range of 1.3340-1.3485.

How to trade

We would buy call options if the pair rises above 1.3321.

Asset: GBP/USD
Direction: Call
Target price: 1.3321
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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