Hello, dear traders! On the hourly chart, the GBP/USD pair has made a rebound from the correctional level of 61.8% at 1.3576, reversed in favor of the British currency and fixed above the descending trend line. Thus, traders' sentiment has temporarily changed to the bullish one. However, currently the British currency quotes failed to show the growth to the 76.4% Fibo level at 1.3675. The pair's decline may be resumed, but at a slower pace. This week, several important reports were released in the UK, including unemployment, wages and inflation. Besides, a retail trade report will be published on Friday. However, at the moment traders are focused only on highly significant reports.
For example, they filtered out the unemployment and payroll reports. Moreover, the inflation report, favourable for the British pound, could be ignored too as the pound did not rise immediately. I expect that tomorrow's retail trade report will not cause traders' strong reaction either. Besides, no more significant events are scheduled for Friday. Thus, the bearish trend may have weakened, resulting in a close above the trend line. However, this fact does not mean it has been cancelled. There is little news and reports at the moment. Besides, traders are not willing to work out the existing data. Therefore, currently I am counting only on the coming Bank of England and Fed's meetings. These events do not provide any ground for the British pound's moves. However, its moves are too slow.
On the 4-hour chart, the pair made a consolidation under the uptrend line, which kept the quotations above it for a long time. Currently, the fall can be continued towards the correctional level of 50.0% at 1.3457. The rebound from the 38.2% Fibo level raises the probability of a new fall. It may be slow. The bullish divergence was cancelled very quickly and failed to stop the British pound's decline. There are no new emerging divergences in any indicator today.
US and UK economic news calendar:
US - Number of initial and repeated jobless claims (13-30 UTC).
Thursday's single report will be released in a few hours. However, I do not think traders will work it out as it is quite weak and is unlikely to show any unexpected value. Thus, I believe that there will be no information background today.
GBP/USD outlook and recommendations for traders:
I recommended selling the British pound if there is a close under the rising trend line on the 4-hour chart with a target of 1.3497. New sales of the pound can be opened if there will be a rebound from 1.3642 on the hourly chart with the same target. Currently, I do not recommend buying the British pound as the pair may be at the very beginning of a new downtrend.