4h
The pair GBP / USD on the 4-hour chart complied with the correction level of 200.0% - 1.3047. Bullish divergence in the CCI indicator allows the pair to perform some growth. Fixing the quotes of the pair above the Fibo level of 200.0% will allow to expect the continuation of growth in the direction of the correction level of 161.8% - 1.3301. The pair's exit from the Fibo level of 200.0% will work in favor of the US currency and the resumption of a fall towards the corrective level of 261.8% - 1.2638. On July 20, there are no new brewing divergences.
The Fibo grid is built on extremes from March 1, 2018 and April 17, 2018.
1h
On the hourly chart, the pair executed a reversal in favor of the British currency after the formation of bullish divergence in the MACD indicator and the rebound from the corrective level of 127.2% to 1.2963. As a result, the pair growth process can be continued in the direction of the correction level of 100.0% - 1.3049. Quit of quotations from the Fibo level of 100.0% will allow traders to count on a reversal in favor of the US currency and a return to the correction level of 127.2% - 1.2963. Fixing the quotes above the Fibo level of 100.0% will increase the chances for further growth in the direction of the next correction level of 76.4% - 1.3122.
The Fibo grid is built on the extremes of June 22, 2018, and June 28, 2018.
Recommendations for traders:
Purchases of the GBP / USD pair can now be kept open with a target of 1.3049 and a Stop Loss order under the correction level of 127.2%, since there has been a retreat from the Fibo level of 1.2963 (hourly chart). Closing above the correction level of 100.0% will help to keep purchases with the target of 1.3122.
Sell GBP / USD pair will be possible with the target of 1.2963 and a Stop Loss order above the correction level of 100.0% if there is a retreat from the Fibo level 1.3049.
The material has been provided by InstaForex Company - www.instaforex.com