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GBP/USD Forecast 6 June 2016

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GBP/USD Forecast 6 June 2016
5/5 of 3 ratings

Investors wait for the official clarification what happened on Friday

On Friday, the incredibly low Nonfarm Payrolls excited the markets. In May, only 38 thousand new jobs were created instead of forecasted 159K-165K.

As a result, the expectations for the June rate increase have fallen to 37.25%, and now the market expects the next increase in November (50.5%). But this is the result of only one day.

In the current situation, investors wait for the official clarification what has happened. And in this regard, the main event of the day will be the speech of Janet Yellen in Philadelphia. The other important news isn’t scheduled for today.
Today the British pound shows the non-trading situation.

How to trade

We expect a continuation of the downward movement if the pair will overcome the range of 1.4394 - 1.4352. The short-term upward movement is possible after the breakdown of the level 1.4482. We would buy put options if the pair falls below 1.4352. We would buy call options if the pair rises above 1.4482.

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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