GBP / USD - 4H.
Good evening, dear traders! As I said in yesterday's review, the pair completed another rebound from the upward global correction line, and this completed the development of our previous signals. The target level of 76.4% 1.2995 already developed with a margin. Thus, now, it is time to formulate a new trading strategy and outline new trading ideas.
On the 4-hour chart, the GBP / USD pair reversed in favor of the British currency and began the growth process in the direction of a new downward trend. Therefore, the trend line and the correction line formed a kind of a narrowing triangle. In this regard, a new trading idea is to wait for the pair quotes to exit this triangle, then it will become clear what mood the traders will form in the coming days. After that, consolidating the quotes of the pair above the upper trend line will increase the probability of continuing the growth in the direction of 1.32 and 1.33. The rebound of quotes from this line will develop in favor of the US dollar and the resumption of decline to the bottom line of correction. On the other hand, further closing under the correction line will increase the chances of the pair to continue the decline, which I will recommend working out.
Forecast and recommendations of GBP/USD for traders:
The new trading idea is to sell the pound when fixing below the correction line from which the pair rebounded yesterday, as well as to buy the pair if it closes above the upper trend line. In turn, the goals will be indicated after one of the signals is triggered.
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