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GBP/USD Forecast 8 Apr 2016

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GBP/USD Forecast 8 Apr 2016
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The pair GBP/USD is very close to the support level of 1.40

The British Pound continues to move down, and already came close to a strong support around 1.40. Yesterday the pair GBP/USD lost 65 points.

The UK unexpectedly published the positive data on the index of housing prices. Halifax recorded a monthly increase of 2.6% (forecast 0.7%), in the annual assessment of 10.1% (forecast 9.5%). However, these data could not keep the pound against the general strengthening of the US dollar.

Today the UK will present data on manufacturing and industrial production. The trade balance is expected to increase: -10.20 billion pounds against -10.29 billion in January. NIESR is also to publish GDP forecast for March.

How to trade

If the pair GBP/USD breaks below 1.40 it may fall to the area of 1.3905. Therefore, we would buy Put options if the pair falls below 1.40.

Asset: GBP/USD
Direction: PUT
Target price: 1.40
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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