GBP / USD - 4H.
Good evening, dear traders! In a review for Monday, I pointed out that the global correction line plays a key role now in determining the mood of traders. Yesterday, the pound-dollar pair declined to it, as I expected, and after the formation of a bullish divergence, the CCI indicator reversed in favor of the "British". Moreover, a strong increase in the quotes of the pair has not yet been achieved, however, the mood among traders will be clearly "bullish" today and tomorrow. Therefore, I expect the pair to increase by 50% or 62% from the last decline, that is, to the levels of 1.3074 or 1.3107. At the same time, fixing quotes under the global correction line will work in favor of the US currency and the resumption of the decline in the direction of the level of 1.2904, which is the minimum goal for a further decline. In turn, an informational background could help the "Briton" yesterday, but news from America was stronger. In addition, the speech of Boris Johnson, which significantly reduces the chances of concluding a trade deal with the European Union after Brexit, negatively affected the pound. Today, the information background is calmer.
Forecast on GBP / USD and recommendations for traders:
A new trading idea is to sell the pound when fixing below the correction line with the target of 1.2904 (the first goal, the drop in quotes can be much stronger). Moreover, if quotes rebound from 1.2995, then purchases with targets of 1.3074 and 1.3107 are recommended, while Stop Loss levels are recommended to be moved outside the correction line.
