13.04.202109:36 Forex Analysis & Reviews: Analysis and forecast for GBP/USD on April 13, 2021

Today's review of the pound/dollar currency pair will begin with the still topical topic of COVID-19, after which I will outline the main fundamental events of today and conduct a technical analysis, based on which I will try to give trading recommendations for this instrument.

So, as you all know, the main strategy to contain the COVID-19 pandemic is mass vaccination of the population. According to the World Health Organization (WHO), as of yesterday evening, about 780 million people were vaccinated in the world. Even though some experts are optimistic about this figure, in my personal opinion, it is still extremely small to defeat the coronavirus infection. So, in India, a new anti-record for the number of daily covid infections was set, which amounted to 170,000 people. In total, since the beginning of the pandemic in India, more than 13.5 million people have been infected with the COVID-19 forged epidemic. The figure, as you know, is serious, even considering the huge population of this country. In today's article on the euro/dollar, it was already noted that things with the vaccination of the population of the European Union are slowly improving, the pace is growing, and the initial failure of the company to vaccinate European citizens is gradually leveled. In the UK, the vaccination situation has been different from the EU for the better from the very beginning, and here, for all the sympathy or dislike for Prime Minister Boris Johnson, he must be given credit. The British Prime Minister took the British vaccination campaign very seriously. Given this aspect, it can be noted that the UK left the European Union in time. True, the new trade relations between these two entities have not yet been fully established, but it will take time, and it is simply impossible to resolve all the problems overnight.

Now about the macroeconomic statistics. At the time of writing this article, data on the change in UK GDP has already been published, which turned out to be weaker than the forecast values and came out in the red zone. So, every month, with a forecast of 0.5%, the actual GDP growth for February was 0.4%. But the data on industrial production was better than expected and came out in the green zone. Specific figures can be seen in the economic calendar. Naturally, these are important indicators for the British currency, but since we are considering the pound/dollar pair, we should not discount the upcoming reports from the US on the consumer price index, which largely indicate inflationary pressure in the country. This most important indicator will be published at 13:30 (London time). Now let's look at the charts of the GBP/USD currency pair.

Daily

Despite the weak GDP data, the pound/dollar currency pair is showing growth at the end of the article. Such dynamics were influenced by strong reports on industrial production. However, as usual, I tend to believe that the current dynamics of sterling paired with the "American" is more related to the technical picture. Despite all the difficulties with the promotion of quotes in the north direction, the bulls on the pound should be given credit for their perseverance and inflexibility of spirit. Well, they don't want to give up on the mercy of the bears, and that's it! Yesterday's trading, the GBP/USD pair ended with growth while rolling back to the broken lower border of the daily cloud of the Ichimoku indicator. It is characteristic that this trading scenario was assumed in yesterday's review of this currency pair. However, the quote was not destined to return to the limits of the Ichimoku cloud, as a result of strong resistance at 1.3774, a fairly long upper shadow was formed at the candle for April 12. Today's growth, if it continues, may be limited near 1.3792, where the red line of the Ichimoku Tenkan indicator is also located right on the lower border of the cloud. If today's trading closes above the Tenkan and within the cloud, this will be a bell for further strengthening of the quote. Otherwise, when forming a candle with a long upper shadow, the pair is likely to expect a decline and another test of support at 1.3670. Pay attention to how strong this level is, it also repelled the bears' attack yesterday, resisted, and did not let the course go lower. If you go to the trading recommendations, then there are no unambiguous trading ideas at the moment. Sales are recommended to be considered after the rise in the area of 1.3790-1.3810 and the appearance of bearish candle patterns on the daily, four-hour, or hourly charts.