FX.co ★ GBP/USD analysis and forecast for August 12, 2021

Yesterday's data on the consumer price index in the United States came out quite mixed and did not support the US currency. Against this background, the GBP/USD currency pair showed very volatile movements, which ended with the British pound strengthening against the US dollar. For more information about the consumer price index in the United States, you can read today's review of the euro/dollar currency pair. This article will pay attention to today's British statistics, which have already been published. So, at 07:00 London time, reports on preliminary GDP data for the second quarter and reports on GDP for June were received from the UK. In addition to the preliminary data for the second quarter on a quarterly basis, all other GDP indicators exceeded economists' forecasts and came out in the green zone. Unfortunately, for buyers of the British currency, another important indicator (the overall trade balance) turned out to be significantly worse than the previous indicator. All the details can be seen in the economic calendar. And we turn to the consideration of the technical picture for the pound/dollar pair, and we will start with the results of yesterday's trading.

Daily

Despite the final growth of GBP/USD, the pair initially declined to the level of 1.3801 at the auction on August 11, where it found quite strong support. After that, the pound showed a fairly impressive recovery and ended Wednesday's trading with an increase, closing the session at 1.3860. Let me remind you that this level has been repeatedly noted as significant. The result of yesterday's trading once again showed and proved this. I would also like to draw your attention to the strong resistance that passes in the area of 1.3880-1.3890 (near another landmark mark of 1.3900).

As you can see, the red Tenkan line of the Ichimoku indicator and the blue 50 simple moving average passes here. After quite positive British statistics, I also consider it characteristic that the pound did not rush to increase. However, at the time of writing this article, the bulls for the pound have already begun to show activity and are testing the strength of the red Tenkan line. I want to emphasize that for all the seriousness of their intentions, players need to go up on the Tenkan and the 50 MA. Let me remind you that at 13:30 London time, a block of macroeconomic statistics from the United States is expected, which may impact the results of trading on the pound/dollar pair. If we identify the trading recommendations for today, then given the already published and relatively strong statistics from the UK on GDP, preference can be given to the pair's purchases. However, the publication of American data is still ahead. It is also worth considering the fact that the pair is currently trading in the vicinity of strong resistance, and buying under resistance is not the best trading idea. If you continue the upward dynamics and departure above 1.3900, with the mandatory fixing of the price above this mark, on a rollback to the area of 1.3900-1.3880, you can try buying the British. Sales will become relevant if reversal patterns of candle analysis appear near 1.3900 on four-hour or hourly timeframes.