GBP/USD - 4H.
As seen on the 4-hour chart, the GBP/USD pair performed a reversal in favor of the US dollar in the upper area of the downward trend corridor, which can still be designated as horizontal. Nevertheless, there is a reversal and now traders can expect some drop in quotations in the direction of the correction level of 61.8% (1.2836) and the lower area of the horizontal corridor. I still pay attention to the fact that the growth of the pound-dollar pair is now limited to the upper line of the corridor. Buying a pair near this line is simply impractical. Thus, sales.
10 days before the start of the parliamentary elections in the UK, a tragedy occurred in London. Usman Khan, who was released from parole on parole, who had previously served time for terrorist activity, attacked passers-by on the London Bridge. Two people died from their injuries, the terrorist himself was killed during the arrest. Unfortunately, this unfortunate event was the reason for a new skirmish between Jeremy Corbyn and Boris Johnson. The Prime Minister accused the Labor Party of having passed the relevant law during their time in power, under which those convicted of terrorist activities are entitled to early release. For this reason, Johnson considers, and the incident on the London bridge became possible. Usman Khan was sentenced to 16 years in prison in 2012 for trying to blow up the London Stock Exchange, Big Ben and Westminster Abbey, as well as attack capital mayor Boris Johnson. However, he served only half of the sentence. It is difficult to say why Boris Johnson regarded Khan's actions as terrorism. Nevertheless, in the run-up to the elections, the situation in London is heating up, and the story is very resonant. As strange as it may seem, this story and Johnson's subsequent statements further solidify his lead before the election. When something like this happens, people do not want to look for the perpetrators, they are afraid, they do not want to understand everything that happened. Boris Johnson immediately called the perpetrators (the Labor Party) and this information is already imprinted in the minds of the people of London, and perhaps the whole of the UK. It doesn't matter if the Labor Party is really to blame or who is behind this attack. The idea will settle in people's minds that the tragedy was due to the negligence and short-sightedness of the Laborites.
Forecast for GBP/USD and trading recommendations:
The pound-dollar pair started falling with two goals. The first, intermediate, is the correction level of 61.8% (1.2836). The second is the lower area of the horizontal corridor. Thus, I recommend buying the pair only if the bull traders manage to consolidate over the trend range. Sales look more reasonable now, even despite the low activity of traders.
The Fibo grid is based on the extremes of March 13, 2019, and September 3, 2019.
