Forex Daily Analysis: 06 May 2021- GBP Strengthens Due to Loosening Lockdowns

The daily forex analysis of May 06, 2021 will discuss the news that the UK will ease the lockdown, further making market participants optimistic about the economic recovery in the UK. In addition to this, due to the weakening of the US Dollar, it caused the movement of the Pound Sterling to strengthen compared to the US Dollar in market trading last Wednesday. For today's move, it is predicted that GBPUSD will still continue its strengthening for the Poundsterling. The focus of market participants today will be the release of quite a lot of economic data and may cause the movement of GBPUSD to be volatile. The economic data will be released starting at 18:00 WIB. The data that will be released is the view of the chairman of the Bank of England regarding the state of the economy and what policies will be taken to revive the British economy after the Corona pandemic attacked all countries in the world. If all these data are released above the prediction and the previous period, then it is certain that the Pound Sterling will strengthen against the US Dollar. The US dollar is still trying to maintain its strength against other major currencies. This was seen after Janet Yellen's controversial statement as US Treasury Secretary. He said that it is possible that the Central Bank will raise interest rates to stabilize the current recovery of the American economy. In addition, the action of selling technology stocks has attracted investors to hunt for safe haven currencies including the US Dollar. On the other hand, Federal Reserve Chairman Jerome Powell said that currently the absorption of labor with existing opportunities is still far from the target that is the benchmark for discussions on stimulus reduction and interest rate hikes. The focus of market participants will be on the release of NFP data as well as the unemployment rate and hourly wages which will be released on Friday. It is predicted that economic data will be good and can support the strengthening of the US Dollar again.

Forex Daily Analysis Predictions

Today's FOREX prediction on the GBPUSD pair is expected to weaken/fall and the recommended OP (Open Position) is SELL at the level of 1.38800. With a Target Profit (TP) of 10 - 20 points and a Stop loss (SL) of 5 - 10 points.
This the daily analysis of forex on May 06, 2021 regarding the strengthening of the GBP due to the easing of lockdowns in the UK. Keep Money Management and Risk Management first in your trading. Visit GIC Indonesia to get information about the world of trading. You can also join us in the GIC Trade Telegram Community and GIC Trade Telegram Channel. Don't forget to check out the GIC Indonesia Youtube account which is full of a lot of information, and follow our Instagram account to get information about various interesting webinars that you can participate in.