GBP/USD – 4H.
Good day, dear traders! As I said in the last review, after the quotes rebounded from the upward global correction line, the GBP/USD pair reversed on the 4-hour chart in favor of the British and started the growth process in the direction of the downward trend lin. In total, these lines form a triangle, from which I will now wait for the price to exit in order to determine the further trend. At the moment, the pair’s quotes have worked out the downward trend line. Thus, if there is a rebound from it, it can already be regarded as a new signal for sales with a goal slightly higher than the already familiar level of 76.4% (1.2995). If traders perform a close on this trend line, I would recommend not to rush with purchases, but to review the entire graphical picture of the pair. Yesterday, an important meeting of the Bank of England was held in the UK, during which it was decided not to change the size of the key rate, which came as a shock to some traders. Today, the official Brexit will take place. These two events seem to be the reason for the growth of the British pound, which, therefore, may not be too long-term.
Forecast for GBP/USD and trading recommendations:
The new trading idea is to sell the pound when it is fixed below the correction line, as well as to buy the pair if it closes above the upper trend line. However, today I do not recommend buying the pound, as its information background is now too strong, which can cause a sharp reversal in favor of the dollar. I recommend selling small lots in the event of a rebound of quotes from the downward trend line with the target of 1.3015 (approximately).