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GBP/USD Forecast 9 June 2016

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GBP/USD Forecast 9 June 2016
5/5 of 3 ratings

Yesterday the United Kingdom reported strong data on industrial and manufacturing production, but the Cable couldn’t take advantage.

In the UK, the industrial production showed an increase 2.0% vs. 0.0%. The manufacturing production increased by 2.3% against the forecast of 0.1%.

Today the UK is to publish data on its trade balance for April. The total trade balance is expected to be -11.2 billion pounds against -11.2 billion in March.

The US economic calendar is almost empty. The initial jobless claims are expected at 270K against 267K previous week.

We consider the situation as neutral. It looks like the pound will be kept in the range of 1.4470-1.4550.

How to trade

The pair GBP/USD will continue to move upwards if rises above 1.4575. In this case, we are ready to buy call options. 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 1.4495.

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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