GBP/USD – 4H.

As seen on the 4-hour chart, the GBP/USD pair performed a reversal in favor of the US currency and began the process of falling towards the correctional level of 61.8% (1.2836) after the formation of a bearish divergence at the CCI indicator. Thus, I expect the fall to continue today, although both major pairs now have extremely low activity. Quotes of the pound/dollar pair left the boundaries of the downtrend range, which further confused the already unequivocal graphic picture. Now, the downward trend has been disrupted, and the pair's exchange rate has been canceled due to divergence.

The information background is no better than the graphic picture now. To begin with, there has been no economic news from America or Britain since the beginning of the week. In America, the meetings concerning the case of the impeachment of Donald Trump continue. In the UK, the debate between Jeremy Corbyn and Boris Johnson continues in an attempt to appear before voters in the most favorable light and collect as many votes as possible in the upcoming elections. However, all these political vicissitudes are already rather tired of traders. The rate of any currency, first of all, "interested" in economic data. To be more precise, the rate of any currency depends on traders who are primarily interested in economic data. Now, these same data are not from the economic sphere, and when the news calendar was breaking from important reports, traders decided to "take a vacation" and missed everything. This is the case with the pair, once highly volatile and this is what attracts the attention of traders. If the daily rate for the euro currency is 40-50 points, then the rate for the pound is 90-120 points. Now, it is difficult to gain 50-60, and even without a certain direction.

Thus, there is nothing else for traders to do but wait: wait for new data, wait for the parliamentary elections, wait for developments in the drama "trade war", which will affect the economic reports from America, wait for these very reports, wait for new speeches by Jerome Powell, wait for the interest rate cut by the Bank of England. I'd like to add "wait for more action from the Fed" to the list, but yesterday's minutes from the last meeting made it clear that the regulator is taking a break and expects three rate cuts to be enough to stimulate the economy. Of course, Donald Trump will not agree with the Fed, who recently called Jerome Powell, chairman of the Fed, for a conversation. No one knows exactly what the conversation was about, and even the official versions of the White House and the Fed differ. However, there is speculation that the conversation was just about the rates and Trump once again tried to convince Powell to lower them. But what the president of the Fed does not say to Trump is unknown.

Forecast for GBP/USD and trading recommendations:

The pound/dollar pair began to fall, but the overall low activity of traders does not allow us to assume serious exchange rate changes until the end of the week. Thus, purchases, from my point of view, are still not very expedient, especially considering the bearish divergence, the lack of a short-term information background and a negative long-term one. It is also impractical to sell the pair after exiting the upward corridor. For some time, it is better to wait and observe the development of events.

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