GBP/USD – 4H.
Good day, dear traders!
As seen on the 4-hour chart, the "Briton" performed a reversal in favor of the US dollar after the formation of a bearish divergence in the CCI indicator, however, a long-term drop in quotes did not work. The growth process has been restored in the direction of the global correction line, from which I expect a rebound with the resumption of the fall in the direction of the low levels of 1.2904 and 1.2789. The same report on US inflation that I mentioned in the EUR/USD survey will also have a high value for the GBP/USD pair. Strong US inflation will trigger new sales from bear traders. Thus, it turns out that the euro and the pound may show a high degree of correlation during today's day, and much will depend on the information background from America. Weak data will allow traders to expect the pair to continue growing and close above the correction line, which will further increase the chances of further growth of the pound.
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.