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GBP/USD Forecast 6 Apr 2016

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GBP/USD Forecast 6 Apr 2016
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GBP/USD resumed its bearish movement

Yesterday, the British pound lost more than 100 points, despite the positive data on the services PMI, which showed growth to 53.7 against the previous 52.7.

Pound was under pressure because of the scandal with the Mossack Fonseca company and the UK, Iceland officials also involved in the scandal.

However, the increase in the US non-manufacturing PMI, which showed an increase from 53.4 to 54.5 became the main market driver yesterday. The Markit composite index amounted to 51.3 vs. 51.0 previously in the final assessment in March.

The US trade balance decreased a little in February. Investors traditionally expected March and April - traditionally the surplus months (on a budget) due to the completion of the tax period.

How to trade

As expected, yesterday the pair GBP/USD resumed its bearish movement and descended to the mark of 1.4120. The mark of 1.4050 is the next goal for the pair GBP/USD today. We would buy PUT options if the price falls below 1.4100.

Asset: GBP/USD
Direction: PUT
Target price: 1.4100
Close price: 1.4119
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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