GBP/USD - 4 H.
On October 4, the GBP / USD pair completed consolidation above the Fibo level of 61.8% - 1.2836 on the 4-hour chart, and the bullish divergence of the CCI indicator has not been canceled. Thus, now, traders can expect some growth of quotations in the direction of the correctional level of 76.4% - 1.3044. On the other hand, new brewing divergences are not observed on October 29. The information background for the pair can be interpreted in different ways, and tomorrow, it can make big changes in the dynamics of the pound-dollar pair.
News of the Brexit delay agreement is good news for the British pound. The European Union has officially announced the granting of flexible postponement to London, which means a formal postponement of the new release date to January 31, but the UK may withdraw earlier as soon as Boris Johnson is able to agree with Parliament on ratification of the agreement. Meanwhile, the main opposition of Boris Johnson and the ruling Conservative Party, Jeremy Corbyn, whose party yesterday refused to accept the Prime Minister's proposal for early parliamentary elections on December 12, sharply changed his mind today. According to Jeremy Corbyn, his party has achieved the most important thing - the impossibility of holding Brexit's "No Deal", and is now ready to agree to hold early parliamentary elections. Let me remind you that it is through re-election that Boris Johnson will try to win more seats for his party than he currently has. This will be necessary in the future in order to freely adopt any bills that the conservatives or Boris Johnson will need. First of all, it concerns Brexit so with or without a deal, it doesn't matter. Moreover, Johnson is sorely lacking in parliament right now (thanks to the elections held by Theresa May), but where are the guarantees that there will be more after the new elections? The Labour party themselves also announced their readiness for the election, as well as for the largest and most ambitious election campaign. Corbyn and his party members understand that either they will get no less votes than they have now, or all efforts to prevent Brexit from "No Deal" can be considered in vain. At the same time, the people of Great Britain cannot but understand this, who, according to various sociological studies, is not so sure of the expediency and necessity of Brexit, especially without an agreement. In any case, we can witness some of the most interesting and fateful elections.
For the pound, it all now boils down to the fact that Brexit's "No Deal" will not be in the near future, which is good. Therefore, bull traders are happy to buy the British currency. If tomorrow it turns out that America's GDP will slow down and the Fed will lower its key refinancing rate, then there will be even more bullish factors for the pound-dollar pair.
What to expect today from the pound-dollar currency pair?
The pound-dollar pair consolidated above the correction level of 61.8%. Today, I expect continued growth to resume, and tomorrow, increase in the activity of traders, as there will be much more news and reports on October 30. Only fixing the pair's exchange rate at the Fibo level of 61.8% can be interpreted in favor of the US currency and count on the resumption of the fall in the direction of the correction level of 50.0% - 1.2668.
The Fibo grid was built at the extremes of March 13, 2019 and September 3, 2019.
Forecast for GBP/USD and recommendations for traders:
I recommend buying a pair with a target of 1.3044, since it closed at 61.8% with a Stop Loss of 1.2836.
I recommend considering the sales of the pair with the target of 1.2668 if consolidation under the last low of bullish divergence is completed.
The material has been provided by InstaForex Company - www.instaforex.com