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GBP/USD Forecast 2 May 2016

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GBP/USD Forecast May 2, 2016
5/5 of 3 ratings

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.

Asset: GBP/USD
Target price: 1.4580
Direction: Put
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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