Sorry, you need to enable JavaScript to visit this website.

GBP/USD Forecast 8 June 2016

You are here

GBP/USD Forecast 8 June 2016
5/5 of 3 ratings

Yesterday the British pound made a surprise - the price has risen by 178 points during some minutes.

Then the price returned to its previous range. Later this price jump was explained by the error of the trader or failure of the trading system.

The cable also had its own reasons for strengthening. BRC retail sales monitor showed an increase from 0.9% to 0.5%. The Halifax house price index gained 0.6% against the expectations of 0.3%. The US data were mixed yesterday.

If the British pound is really starting to calm down in anticipation of the referendum on the exit from the EU and begins to react to the economic data, today it can trade in the range of 1.4565 – 1.4595 on the back of neutral British data.

In April, the industrial production is expected to decline from 0.3% to 0%. The manufacturing production is expected unchanged.The US has no important news except the crude oil inventories.

How to trade

If the pair GBP/USD pair will be able to break through the 1.4595, it will continue to grow. However, we would buy call options if the pair rises above 1.4565. The short-term downward movement is possible in the range of 1.4517 - 1.4482. We would buy put options if the pair falls below 1.4517.

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.

You may also read