GBP/USD – 4H.
Good day, dear traders!
As seen on the 4-hour chart, the "Briton" continues the growth process after an unsuccessful attempt to consolidate under the low level of 1.2904, which was the first target level for the trading idea of closing under the global correction line. The pair performed a reversal in favor of the pound and started moving back to this correction line. Thus, I believe that the rebound of quotes from this line from the bottom will work in favor of the US dollar and the resumption of the fall in the direction of both target levels announced earlier - 1.2904 and 1.2789. At the same time, I will consider the completion of the current trading idea if the pair makes a fix over the correction line. There are no divergences formed on February 12 for any indicator, although a bearish divergence is brewing for the CCI indicator. Rebound from the correction line and divergence may coincide and strengthen the sell signal.
Forecast for GBP/USD and trading recommendations:
The new trading idea is to sell the pound with targets of 1.2904 and 1.2789 when rebounding from the correction line (marked with a down arrow). If this condition is met, I recommend selling the pound/dollar pair again.
