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GBP/USD Forecast 7 June 2016

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GBP/USD Forecast 7 June 2016
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Yesterday the pair GBP/USD showed an interesting moving.

Yesterday morning we saw the sharp sell-off, but by the end of the day, the cable was able to fully recover its position.

Janet Yellen expressed concerns about the results of the report on the labor market and her comments were softer than a few weeks earlier. In fact, the Fed chief simply didn’t allow the market to believe in the strength of the US dollar yesterday.

This time, Janet Yellen didn’t say that the rate will be increased in the coming months. Furthermore, she expressed concerns about China's output and the threat of Brexit.

Today, the UK is to publish the Halifax House Price for May, the forecast 0.3% vs. -0.8% previously.

How to trade

The pair GBP/USD may show the downward movement if it overcomes the range of 1.4394 - 1.4357. The short-term upward movement is possible after overcoming 1.4525. We would buy call options if the pair rises above 1.4525. We would buy put options if the pair falls below 1.4394.

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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