11.06.202113:08 Forex Analysis & Reviews: Trading idea for GBP/USD

Exchange Rates 11.06.2021 analysis

Dollar unexpectedly sank yesterday despite the positive data on US inflation. Accordingly, this resulted in pound rallying, during which a bullish engulfing pattern was formed, and the quote hit the level where most buyers set their stop orders. Sell stops, meanwhile, remained intact.

Exchange Rates 11.06.2021 analysis

Pound could undergo a pullback if traders make use of Fibonacci extensions.

Exchange Rates 11.06.2021 analysis

Since pound has a three-wave pattern (ABC), where wave A represents the buying pressure on Thursday, traders can open long positions to trigger a 50% retracement from 1.41400-1.41300. Place stop loss at 1.41, and then take profit at the breakdown of 1.42. This strategy is under the framework of Price Action and Stop Hunting.

Good luck!

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

Andrey Shevchenko,
Analytical expert
InstaForex Group © 2007-2021
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