10.06.202111:39 Forex Analysis & Reviews: Analysis and forecast for GBP/USD on June 10, 2021

Daily

The pound/dollar currency pair has its problems with moving north. We are talking about the mark of 1.4200, which acts as a serious obstacle to the further growth of the quote. At the beginning of this month, the bulls on the pound intended to once again go up to the strong technical level of 1.4200. However, they stumbled over 1.4201, after which the pair's rate retreated and is trading near 1.4092. The main fundamental background for GBP/USD today will be the US consumer price index, the publication of which is scheduled for 13:30 London time. It is quite logical to assume that strong data on consumer price growth in the United States will support the US dollar, as it will once again increase speculation about a possible reduction in the volume of the Fed's quantitative easing program. At the same time, I do not exclude that the speech of Christine Lagarde, which will begin 45 minutes after the ECB announces its verdict on rates, will impact the price dynamics of GBP/USD. At least, it used to happen, and quite often. If they return to the technical picture for the pound, the pound/dollar pair is trading in the range of 1.4200-1.4000, and its further direction will largely depend on which way the pair leaves the established range. It is also worth noting that the pair is trading between the Tenkan and Kijun lines of the Ichimoku indicator on the daily chart, which act as resistance and support. Given that the Kijun passes at 1.4050, and the blue 50 simple moving average is located slightly below the most important psychological and technical level of 1.4000, we will consider 1.4050-1.3990 as the support area. And taking into account the red Tenkan line, the resistance of sellers is in the area of 1.4160-1.4200.

H4

At the time of writing, the "Briton" shows a fairly intense downward trend and tries to break through the orange 200 exponential moving average. If the bears on the pound can lower the quote under the 200 EMA and consolidate trading under this moving average, you can think about selling since the 200 EMA will already act as a resistance. The inability of the downside players to overcome the 200 EMA and the appearance of a bullish pattern of Japanese candlesticks with a long lower shadow will be a signal for the opening of purchases. Given the range of 1.4000-1.4200 indicated above. We are looking for more attractive prices for purchases on the approach to the landmark level of 1.4000. The most favorable prices for opening short positions should be looked at near 1.4190. Naturally, all the main events will begin to come after the publication of the US consumer price index, which will be released at 13:30 (Lonon time). In this regard, I recommend caution, as increased volatility and sharp multidirectional movements are not excluded. Tomorrow, considering the US reports on consumer prices released today and the actual closing of trading, we will summarize the results and try to predict the closing of the current trading five-day period.