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Forecast and trading signals for GBP / USD for June 11. Detailed analysis of yesterday’s recommendations and the movement of the pair during the day.

GBP / USD 5M. The GBP / USD currency pair traded much more beautifully on Thursday. Firstly, only the US inflation report mattered for the pound / dollar, nothing else had any influence on it. Secondly, the signals began to form during the European session. Thirdly, during the day there were no frequent and sharp turns, “swings”. We have already spoken about American inflation, it exceeded the forecasted values ​​and amounted to 5%, so it is not surprising that the American currency slipped in tandem with the pound sterling. The first trading signal to buy was formed in the morning in the form of a rebound from the extremum level of 1.4080. Buy orders should have been opened here. A little later, the quotes came close to the extremum level of 1.4101 and the time was just approaching the publication of the inflation report in the US. Therefore, here it was necessary to set Stop Loss to breakeven or to close a buy deal manually. In the first case, everything depends on where exactly the Stop Loss was placed, since the price after the publication of the American inflation dropped significantly. Nevertheless, traders could earn 50 pips on this trade or it closed at breakeven. In any case, no loss was received, which is very good on such active movements. In the second case, it was possible to earn about 20 points. All subsequent signals after the publication of the inflation report should be ignored, since the movements began very strong and with reversals. Although the price has worked out the Kijun-sen and Senkou Span B lines several times. However, we do not recommend that traders take risks in such cases. In general, the pound sterling also remained in the side channel 1.4100 – 1.4220, in which it has been for more than three weeks. Thus, in technical terms, nothing has changed for the pound / dollar pair. Overview of the EUR / USD pair. June 11th. Inflation in the US is growing, the ECB leaves the parameters of monetary policy unchanged. Review of the GBP / USD pair. June 11th. Regular negotiations between London and Brussels ended without progress. GBP / USD 1H. On the hourly timeframe, the British pound continues to trade in the sideways channel 1.4100 – 1.4220. This is even better seen here. For more than three weeks, the pair has been in absolute flat and cannot leave the side channel, only occasionally making attempts to break through its borders. Moreover, even bounces from the channel boundaries cannot be used as signals, since they are far from always clear. In technical terms, we continue to draw the attention of traders to the most important levels and recommend trading from them: 1.4080, 1.4101, 1.400 and 1.4219. These levels have not changed for a long time, because the price continues to be in a limited range. Senkou Span B (1.4165) and Kijun-sen (1.4135) lines can also be sources of signals, but they are weak in the flat. It is recommended to set the Stop Loss level at breakeven when the price passes in the right direction by 20 points. The Ichimoku indicator lines can move during the day, which should be taken into account when looking for trading signals. There will be several important events for the GBP / USD pair on Friday that cannot be ignored. Although, upon closer examination, it becomes clear that only the speech of Andrew Bailey, as well as several members of the Bank of England’s monetary committee, is really important. It is to Bailey that the main attention of the market will be directed, as everyone expects comments from him about the possible tightening of monetary policy and the curtailment of the quantitative stimulus program. It is not certain that Bailey and his colleagues will touch on these topics, however, there is a possibility. In addition, the UK will publish reports on GDP and industrial production. However, GDP is not quarterly, but monthly, which usually does not cause any market reaction. The same applies to industrial production … We also recommend that you familiarize yourself with the forecast and trading signals for the EUR / USD pair. COT report. Recall that during the last reporting week (May 25 – 31) the GBP / USD pair increased by 55 points. However, in general, no one doubts the direction of the current trend – upward. It was all the more surprising to watch the latest COT report, which showed that over the same time period, professional traders opened 0.5 thousand buy contracts and 6.5 sell contracts. That is, the net position of the “Non-commercial” group decreased by 6 thousand, which is a decent value for the pound. Thus, the picture is as follows. The pound sterling continues to rise and cannot even really correct. At the same time, the size of the net position of the major players practically does not change. Since the beginning of March, changes in the net position have been insignificant, which is shown by both the first and second indicators. And in any case, these changes do not in any way reflect what is happening on the market itself. Moreover, the pound sterling continues to show growth, simply not commensurate with the bullish sentiment of non-commercial traders. And indeed, any group of traders and all together. Thus, we continue to talk about such a global factor as the injection of trillions of dollars into the American economy, which, from our point of view, is the main reason for the strengthening of the British currency. Look, by the way, at the previous section of the trend, between October 2020 and March 2021. The pound sterling gained 1400 points, while the net positions of commercial and non-commercial groups of traders remained practically unchanged. That is, large players did not increase their purchases at this time. At the same time, the pound sterling showed an increase of 1400 points practically without a single pullback. As they say, the presence of third-party factors is evident. Explanation of the illustrations: Price levels of support and resistance (resistance / support) – levels that are targets when opening buy or sell. Take Profit levels can be placed near them. Kijun-sen and Senkou Span B lines – the lines of the Ichimoku indicator transferred to the 1-hour timeframe from the 4-hour timeframe. Support and resistance areas are areas from which the price has repeatedly bounced off. Yellow lines – trend lines, trend channels and any other technical patterns. Indicator 1 on the COT charts is the size of the net position of each category of traders. Indicator 2 on the COT charts is the size of the net position for the “Non-commercial” group. – Source: InstaForex

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