GBP/USD – 4H.
As seen on the 4-hour chart, the GBP/USD pair performed a consolidation above the Fibo level of 61.8% (1.2836), and the bullish divergence of the CCI indicator continues to remain in force and push the quotes up. Thus, today we can count on the continuation of the growth of the pound in the direction of the correction level of 76.4% (1.3044). At the same time, I recommend treating any open transactions with caution, since a large number of economic events in the afternoon in America can result in strong and sharp fluctuations in the forex market.
On the second attempt in October, the British political forces nevertheless agreed to hold early elections in December. Thus, the next 5 weeks will pass in tough agitation of the population to vote for a particular party. Well, the whole choice of the electorate comes down to exactly two options: "Brexit support" and "Brexit cancellation". If you want to support Brexit – you should vote for the conservatives if you want to avoid it – for Labor or Liberal Democrats. In the case of the two main parties in the UK, everything is clear. However, just yesterday, the leader of the Liberal Democrat Party, Jo Swinson, announced her intention to fight for victory in the election and "move" Boris Johnson from his post. According to Ms. Swinson, she wants to prevent Brexit, and it is for this outcome that her party will fight in the election. "As the leader of the party, I am nominating myself for the post of prime minister in these elections to build a brighter future for our country. The first thing to do is stop Brexit," Swinson said.
Somewhere in the European Union at this time, Donald Tusk is crying, who, unlike the retiring Jean-Claude Juncker, remains President of the European Council and he will continue to fight for Brexit. If the opposition political forces win the British election on December 12, the best comedians in the world will work on the name of everything that has happened in the UK since 2016. The defeat of the conservatives can negate all further attempts to implement Brexit, and the European Union can help all the forces of labor, the liberal Democrats, in short, anyone who wants to stop the UK's exit from the European Union and has any political force. By the way, in the UK in recent months, it has become fashionable to be against Brexit. More citizens are concluding that perhaps the results of the 2016 referendum need to be revised. More citizens are in favor of holding a new referendum, but the house of cards of Boris Johnson, whose foundation was built on the thesis "Brexit in any case until October 31," continues to crumble.
What to expect from the pound/dollar currency pair today?
The pound/dollar pair performed consolidation above the correction level of 61.8%. I expect today to continue restrained growth at least until the evening. In the evening, everything will depend on the results of the Fed meeting and the speech of its Chairman Jerome Powell. I hope that Powell will not make loud statements, therefore, the US currency will not receive support today.
The Fibo grid is based on the extremes of March 13, 2019, and September 3, 2019.
Forecast for GBP/USD and trading recommendations:
I recommend buying the pair with a target of 1.3044, as it was closed above the Fibo level of 61.8% with the stop-loss order below the level of 1.2836.
I recommend considering selling the pair with the target of 1.2668 if the bullish divergence is fixed under the last low.
