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GBP/USD Forecast 6 May 2016

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GBP/USD Forecast 6 May 2016
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We expect the strengthening of the US dollar today

The British services PMI followed the general trend and also fell short of forecasts, following the manufacturing industry and the construction sector. If it is a large-scale trend after the decline of the global economy, rather than fears of the Brexit, it can cause the weakening of the British pound.

Today the NFP data will be the main event of the trading say. The Change in Nonfarm Payrolls is forecasted to 200K - 203K against 215K in March. The unemployment rate is expected unchanged at 5.0%. The average hourly earnings are expected to increase by 0.3%.

If the figures are better than expected, it will certainly be a positive signal for the US dollar. We even consider a much better scenario for nonfarm - artificially inflated to shift market expectations.

How to trade

We expect the continuation of the upward movement after the breakdown of 1.4523. The downward movement is possible in the range of 1.4459 - 1.4427. We would buy call options if the pair rises above 1.4587. We would buy put options if the pair falls below 1.4459.

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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