FX.co ★ GBP/USD. June 10th. Results of the day. UK GDP and industrial production sent the pound to a new peak

4-hour timeframe

The amplitude of the last 5 days (high-low): 63p - 72p - 66p - 73p - 74p.

Average amplitude for the last 5 days: 70p (72p).

The British pound sterling failed to show impressive growth on disappointing macroeconomic statistics from the United States. Moreover, today, on June 10, reports were published in the UK on GDP (-0.4% in April), industrial production (-2.7% in April m/m and -1.0% y/y), and also an estimate of GDP growth rates from NIESR in May (+ 0.1%, with a forecast of + 0.5%). From our point of view, it's not even worth saying that the statistics were disappointing. The pound sterling reacted with pleasure to this data through a decline. Thus, the British currency has every chance of starting a new downward trend, because, as we all see, even American aid did not trigger the purchase of the pound sterling. Moreover, the political component continues to have the strongest influence on the preferences of traders. Market participants are now afraid to buy the pound, because it is not even clear who will be the next prime minister. And on this name, will depend on what foreign policy will adhere to the country. From our point of view, the British currency, like the UK itself, is simply vital to quickly elect a new leader and complete Brexit. After all the troubles in the last three years, when the pound sterling fell significantly, the loss of a few more cents against the US dollar is not as important. But the longer the period of uncertainty remains, the longer the pound will be prone to a systematic decrease, which may cause far greater losses in the future, rather than from the "hard" Brexit right now. From our point of view, it is not even particularly important for the pound as to who will become the new prime minister and leader of the Conservatives, since in any case one person cannot decide on how the UK will leave the EU. As proven by Theresa May. Thus, even if Boris Johnson comes to power, this does not mean that a "divorce" will take place according to a "hard" scenario. Recall that the Parliament has already blocked the scenario of a disordered exit once.

Trading recommendations:

The pound-dollar currency pair has consolidated below the Kijun-sen line, so now it is recommended to sell the pound sterling again with targets of 1.2642 and 1.2616.

Buy orders can be considered if traders manage to return the GBP/USD pair above the Kijun-sen line. In this case, the bulls will have a new small chance of strengthening with a target of 1.2757.

In addition to the technical picture should also take into account the fundamental data and the time of their release.

Explanation of the illustration:

Ichimoku indicator:

Tenkan-sen - the red line.

Kijun-sen - the blue line.

Senkou Span A - light brown dotted line.

Senkou Span B - light purple dotted line.

Chikou Span - green line.

Bollinger Bands indicator:

3 yellow lines.

MACD Indicator:

Red line and histogram with white bars in the indicator window.