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GBP/USD Forecast 6 July 2016

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GBP/USD Forecast 6 July 2016
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Comments of the Bank of England Governor Mark Carney put pressure on the Cable.

Mark Carney expressed concerns and confusion regarding the upcoming exit of the country from the EU.

As we know, in June Services PMI showed a decline from 53.5 to 52.3, investors began to buy dollars. The pound lost more than 260 points.

Yesterday the head of the Federal Reserve Bank of New York William Dudley said that it is too early to assess Brexit impact on the world economy.

Today we will see the minutes of the last Fed meeting. Since the Fed meeting was held before the British referendum, we may see an increase in the number of supporters of the summer rate hike at that time.

We also expect good macroeconomic data from the US. The ISM non-manufacturing PMI may show growth from 52.9 to 53.3. The Services PMI is forecasted to grow, 51.5 vs. 51.3.

Tomorrow we expect weak data on industrial production in the UK (-1.0% in May). And this means that the British pound will not have the support. We are waiting for the further decline in the British pound.

How to trade

The downward movement is possible after the breakdown of 1.2804. The corrective movement is possible after the noise range of 1.3119 - 1.3224. We would buy call options if the pair rises above 1.2950. We would buy put options if the pair falls below 1.2850.

Expiry time: 20:00

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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