GBP/USD on April 6 (COT report): The United States wants to solve its economic problems at the expense of other countries



According to the hourly chart, the GBP/USD pair quotes rebounded from the corrective level of 61.8% (1.3820) and resumed the growth process yesterday in the direction of the upper limit of the upward trend corridor and the Fibo level of 50.0% (1.3900). A rebound from the upper line of the corridor will work in favor of a certain drop in the British dollar's quotes. Closing above it will increase the chances of continued growth. Meanwhile, US Treasury Secretary Janet Yellen will soon speak at the Chicago Council on Global Affairs conference, where she is going to call on all countries of the world to set a minimum tax rate for corporations. The US Treasury Secretary believes that such a decision will create more equal conditions for the functioning of all countries. Let me remind you that the Joe Biden administration recently announced a new package of assistance to the economy, which will be aimed at developing infrastructure. However, as a source of funding, the United States plans to raise taxes for corporations and rich Americans. Thus, to prevent several divisions of many companies from fleeing abroad in search of lower tax rates, Janet Yellen wants the whole world to do what will benefit the United States government. "This is about making sure that governments have stable tax systems that generate enough revenue to invest in basic public goods and respond to crises, and that all citizens fairly share the burden of funding government," Janet Yellen said in a future report. Thus, the United States wants to solve its financial problems at the expense of all the other countries of the world, which can just become more attractive for companies after the tax increase in the United States.



On the 4-hour chart, the GBP/USD pair closed above the level of 1.3850 and the downward trend line. Thus, the mood of traders has changed to "bullish", and the growth can now be continued in the direction of the next Fibo level of 161.8% (1.3979). There are no emerging divergences in any indicator today.

GBP/USD – Daily.


On the daily chart, the pair's quotes still performed a rebound from the upward trend line. Thus, in the long term, the "bullish" mood of traders remains, however, the bears may make a new attempt to close under the trend line at any time.

GBP/USD – Weekly.


On the weekly chart, the pound/dollar pair completed a close over the second downward trend line. Thus, the chances of long-term growth of the pound remain.

Overview of fundamentals:

There were no major events or economic reports in the UK on Monday. And the statistics from America again did not cause any emotions among traders.

News calendar for the United States and the United Kingdom:

On Tuesday, the calendars of economic events in the UK and the US are empty, thus, the information background will be available today.

COT (Commitments of Traders) report:


The latest COT report from March 30 on the British pound showed a newly discovered reluctance of major players to deal with the pound. The "Non-commercial" category of traders closed 4,719 long contracts and 6,829 short contracts during the reporting week. If you look closely at the data from the table, it becomes clear that throughout March, speculators actively closed long contracts. Thus, if the report for February 23 showed a two-fold difference between the total number of long and short contracts for speculators, now the numbers have decreased, and the two-fold difference remains. Thus, the "bullish" mood remains, and the pound actively shows a desire to start new growth.

GBP/USD forecast and recommendations for traders:

It was recommended to buy the British dollar after closing above the level of 1.3850 on the 4-hour chart. The nearest target of 1.3900 is worked out. New purchases – in case of overcoming 1.3900 with the goal of 1.3980. I recommend selling the pound when the quotes break from the level of 1.3980 on the hourly chart with a target of 1.3820.


"Non-commercial" - major market players: banks, hedge funds, investment funds, private, large investors.

"Commercial" - commercial enterprises, firms, banks, corporations, companies that buy foreign currency, not for speculative profit, but to support current activities or export-import operations.

"Non-reportable positions" - small traders who do not have a significant impact on the price.

The material has been provided by InstaForex Company -