Today, the British pound/US dollar pair is trading in a range slightly below yesterday's closing price levels. The pound sterling has lost part of its gained positions in the middle of the week and now it continues its downward correction. Today's macroeconomic calendar includes some significant releases from the UK. In particular, investors are waiting for the PMI data. Some pressure on the pound sterling is exerted by the stronger US dollar against a basket of major currencies after the recent debate between Biden and Trump.
In the first half of the day, I expect the pound/dollar pair to continue its downward correction, but in general, I think that the pair will resume its upward trend. The pair is still trading under the control of bulls. A possible pivot point lies at the level of 1.3015.
Today, I am going to buy the pair above this mark to reach the target levels of 1.3105 and 1.3135. Of course, there is an alternative scenario. The pound/dollar pair may continue to lose ground, break through the level of 1.3015, and consolidate below it. In this case, the way towards the levels of 1.2985 and 1.2965 will open.
Yesterday, the GBP/USD pair failed to break above the 1.3000 level and returned again to the sales area envelope on the H4 scale under the level 1.2975. Given the fact that the envelope is still directed in the South and is aimed very much, it must now be followed by a decline to the support level of 1.2845, where it will be decided where the pair will move and whether it will try to expand the envelope to the North and return to the non-penetration 1.3000 or go below 1.2845, and then the South will continue at least under 1.2600. In the meantime, I will keep selling the pair to the level of 1.2845.
Happy trades everyone!