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GBP/USD Forecast 5 July 2016

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GBP/USD Forecast 5 July 2016
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Yesterday, in the absence of the US traders, the pair GBP/USD traded in a narrow range.

In the UK, business activity in the construction sector decreased from 51.2 to 46.0, but under the general mood, the market showed growth.

The Finance Minister also announced its intention to reduce the income tax from 20% to 17% in four years. And it can stop the exodus of corporations from the United Kingdom as the EU supporters predicted.

Today the UK is to publish data on the Services PMI, which is projected to decrease from 53.5 to 53.1. Also, Mark Carney has the speech today.

In the US, the volume of factory orders is expected to decline by 0.8% in May.

We continue to expect the movement of the pair GBP/USD in the range of 1.3340-1.3540.

How to trade

The upward movement is possible in the range of 1.3498-1.3696. The continuation of the downward movement is possible after the breakdown of 1.3120. We would buy Call options if the pair rises above 1.3340. We would buy Put options if the pair falls below 1.3120.

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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