GBP/USD – 4H.
As seen on the 4-hour chart, the GBP/USD pair performed a fall to the corrective level of 23.6% (1.2293), thus reaching the target on the previous signal. The consolidation of the pound/dollar pair under this Fibo level will work in favor of continuing the fall of quotations in the direction of 1.2014 (1.1959). At the moment, no indicator has any emerging divergences, and there is likely to be no rebound from the correction level of 23.6%.
The passions in the British Kingdom calmed down a bit after the Supreme Court decided to overturn the decision of Boris Johnson to suspend the work of Parliament until October 14. The work of Parliament resumed, the opposition continues to fight with the Prime Minister and the Prime Minister – with the opposition. But the closer the October 31 date approaches, to which only 5 weeks remain, the more pressing the question is: how, exactly, is Boris Johnson going to implement his Brexit "No Deal" if Parliament obliged him to ask for a delay from the European Union? There are several options.
First: Johnson will really violate the laws and will not ask for a postponement, so Brexit will be implemented on October 31, and then the Prime Minister will be involved in many years of litigation with a whole bunch of appeals. In this case, he will face a real prison term, and the opposition will do everything possible to make this punishment real for Johnson.
Second: Johnson will indeed send a letter to EU leaders asking them not to postpone Brexit's date. It is difficult to say whether such an option is real and how the European Union will react to it. But still, theoretically, this is possible. Then the UK will again leave the EU on October 31 according to the "No Deal" scenario.
Third: Johnson has a hidden ace in his sleeve and, of course, does not play it ahead of time. That is, it has a surprise. But what a surprise it may be, now one can only guess. And there are no possible answers.
Fourth: Boris Johnson is just bluffing and at the summit on October 17-18, he will ask EU representatives to postpone Brexit on January 31 next year, despite his desire to "die in a ditch, just not to ask the EU for a new transfer of Brexit."
For the pound, another portion of the uncertainty is like death. Traders fear a dark future and in such circumstances do not risk simply selling the British pound. Indeed, why take the risk ahead of the unknown actions of Boris Johnson, if you can buy a dollar that continues to grow to many currencies? Therefore, for the pound to regain demand among traders, it is necessary that, firstly, the situation with the actions of Boris Johnson became clear, and secondly, that these actions were not associated with Brexit "No Deal".
What to expect from the pound/dollar currency pair today?
The pound/dollar pair continues the process of falling. Today, traders have the right to expect consolidation under the correction level of 23.6% (1.2293) and further fall of the pound/dollar pair in the direction of 1.2014. The information background will remain negative for the pair, at least until the release of the report on orders for durable goods in the US.
The Fibo grid is based on the extremes of March 13, 2019, and September 3, 2019.
Forecast for GBP/USD and trading recommendations:
I do not recommend buying the pair shortly, as traders have again started and continue active sales. Information background on the side of the US currency.
I recommend considering the new sales of the pair with a target of 1.2014 if a close is performed under the level of 23.6%, with the stop-loss order above the level of 1.2308.
