Site map
العربية Български 中文 Čeština English Français Deutsch हिन्दी Bahasa Indonesia Italiano Bahasa Malay اردو Polski Português Română Русский Srpski Slovenský Español ไทย Nederlands Українська Vietnamese বাংলা Ўзбекча O'zbekcha Қазақша

InstaForex Client Area

  • Personal settings
  • Access to all InstaForex services
  • Detailed statistics and reports on trades
  • Full range of financial transactions
  • System of managing several accounts
  • Maximum data protection

InstaForex Partner Area

  • Full information on clients and commissions
  • Graphic statistics on accounts and clicks
  • Webmaster instruments
  • Ready-made web solutions and wide range of banners
  • High data protection level
  • Company's news, RSS feeds, and forex informers
Register account
Affiliate Program
cabinet icon

Another Lamborghini from InstaForex!Maybe it will be you who will take the keys!

Just make a deposit of at least $1,000 to your account!

Get the best trading conditions and attractive bonus offers! We have already given 6 legendary sports cars! But it does not stop there! The next Lamborghini Huracan of the latest generation may be yours!

InstaForex – invest in your victories!

Instant account opening

Get a letter of instructions
toolbar icon

Trading Platform

For mobile devices

For trading via browser

GBP/USD – 4H.

Exchange Rates 10.10.2019 analysis

As seen on the 4-hour chart, the GBP/USD pair performed a reversal in favor of the pound and began the process of returning to the correctional level of 23.6% (1.2293), around which it continues to spin for several days. The growth can be explained by the formation of a bullish divergence in the MACD indicator. The divergence is not very strong, but it is still there. At the same time, the growth of quotations is weak, as Brexit continues to dominate the pound. As much as I would like to put Brexit aside and draw the attention of traders to a different background information, but nothing happens, because it is Brexit that remains the number one topic for all traders. And it is Brexit that most affects the movement of the pound/dollar pair. A new rebound of the pair from the Fibo level of 23.6% will work again in favor of the US dollar and the resumption of the fall towards the level of 1.2014.

A brief digest of the latest Brexit news. Each individual news is not important, but all together they add up to the background information that stops traders from buying "Briton". The European Union said that it would be extremely difficult to reach an agreement and was sceptical of all of Boris Johnson's proposals, saying that they did not provide a solution to those problems because of which the deal has not yet been agreed. The EU also said that it still considers the version of the agreement reached last November with Theresa May – the best option. Boris Johnson, in turn, did not give an interview in the last days. The parliament is preparing for the results of the summit on October 17-18, although why prepare for them if there is no agreement with Brussels with a 95% probability. We need to prepare for a possible violation of British law by Boris Johnson, if the Prime Minister does not ask for a delay from the European Union. The Alliance has also said it is ready to grant a new reprieve if London makes such a request officially. That is, Boris Johnson should address officially. But Johnson has not yet addressed, moreover, continues to stand by his position – "There will be no postponement of Brexit." Thus, the main intrigue lies in the Prime Minister of the Kingdom – will he commit a criminal offense by violating the law requiring an agreement with the EU or transfer Brexit?

Economic reports from the UK may have a slight impact on the pound/dollar pair. GDP in August fell by 0.1% m/m, and industrial production lost just 0.6% m/m and 1.8% y/y. It is strange that with such reports, the pound has not yet gone to conquer new lows. Perhaps this situation will be corrected after lunch, when the report on inflation in America will be released.

What to expect from the pound/dollar currency pair today?

The pound/dollar pair aimed to return to the correction level of 23.6% (1.2293) again. The general information background, in my opinion, remains negative for the "Briton". The local background is also negative, economic reports from the UK are very weak. Thus, I expect the pair to resume falling, unless the US inflation report shows a slowdown in September.

The Fibo grid is based on the extremes of March 13, 2019, and September 3, 2019.

Forecast for GBP/USD and trading recommendations:

I do not recommend buying a pair in the near future, as the information background is now difficult to call positive for the pound.

I recommend to consider new sales of the pair with the target of 1.2014 if the rebound from the correction level of 23.6% is performed, with the stop-loss order above the level of 1.2308 or when the bullish divergence is fixed under the low.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

Performed by Samir Klishi,
Analytical expert
InstaForex Group © 2007-2019
Benefit from analysts’ recommendations right now
Top up trading account
Get a bonus from InstaForex

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.