On Friday, the Cable was trying to continue its strengthening but was unable to rise above 1.4650.
In the US, private consumer spending rose by 0.1% against expectations of 0.2% in March, personal income gained more than expected - 0.4% versus 0.3%, but consumer confidence fell from 89.7 to 89.0 in April.
Today the UK has the day off. The US is to publish data on the ISM index of business activity in the manufacturing sector. It’s expected to decrease to 51.6 from 51.8. Construction spending is projected to rise by 0.5% after a reduction by the same 5% in February.
How to trade
We assume that today the pair GBP/USD is going to trade in the range of 1.4550-1.4660. We would buy put options if the pair goes below 1.4580.
Target price: 1.4580
Expiry time: 20:00 GMT