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