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GBP/USD Forecast 4 May 2016

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GBP/USD Forecast 4 May 2016
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Today, the British pound also has a chance to continue weakening

British Manufacturing PMI was shockingly weak, 49.2 against the previous 50.7. As a result, the cable got a lot of pressure and the pair GBP/USD dropped to the 1.45 area.

Today, the British pound also has a chance to continue to remain under pressure. On a back of a referendum in June, and the strengthening of the pound last week, the pair GBP/USD may generate a trend towards 1.43.

The scheduled construction PMI will not be able to provide substantial support if it even comes out positive. Nearest report, which will be able to return the investors' interest in the PMI services, which will be published tomorrow given that it will be positive.

The US will provide several important macroeconomic reports.

First, we’ll see ADP Nonfarm Employment Change. It is expected that the economy added 195K jobs in April.

Later, the US Institute will present the Services PMI. It is expected that the basic index value will be fixed at 52.1%. Also, pay attention to ISM Non-Manufacturing PMI.

How to trade

After yesterday's fall, the pair GBP/USD gained new key levels on the hourly chart: 1.4547, 1.4472, 1.4427. Today we expect the move to 1.4472, in the range of 1.4472 - 1.4427 we expect the price consolidation. If the pair falls below 1.4472, we would buy put options. If the pair rises above 1.4612 we would buy call binary options.

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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