GBP/USD - 4H.
As seen on the 4-hour chart, the GBP/USD pair rebounded from the new correction line and began the growth process in the direction of the previous peak level - 1.3118. Last time, the upward pullback ended near the corrective level of 50.0% (1.3094). If you look closely at the chart, it is obvious that each subsequent peak of the pair's quotes is lower than the previous one. Thus, if this trend continues, about 50.0% of traders can once again count on turn in favor of the US dollar and renewed fall in the direction of the line of correction or near the level of 76.4% (1.2995). Fixing the pair's rate under the correction line itself will work in favor of the US dollar and resuming the fall towards the levels of 1.2900 and 1.2800. For more confidence, I recommend waiting for the close below the correction line to make sure that traders are ready for a new fall in the pound-dollar pair. The information background today slightly supported the Briton, as the level of wages rose in December by 3.2% (better than forecasts), and the number of applications for unemployment benefits was lower than forecasts - 14.9 K. However, it is not yet possible to say that the pound "rose from the ashes" and is ready to conquer the top.
Forecast for GBP/USD and trading recommendations:
The trading idea is still in the sales of the pound. However, this time, I expect a reversal around the level of 1.3094 with a drop of about 100 points down. Or closing below the correction line and further falling by 100-200 points down.
