4h
The pair GBP / USD on the 4-hour chart reversed in favor of the US dollar and began to fall in the direction of the corrective level of 200.0% - 1.3047. Brewing divergences on August 2 are not observed in any indicator. The fall of the pair's rate from the Fibo level of 200.0% will allow traders to count on a reversal in favor of the pound sterling and some growth in the direction of the correction level of 161.8% - 1.3301. Fixing the quotes below the Fibo level of 200.0% will increase the probability of continuing the decline towards the corrective level of 261.8%.
The Fibo grid is built on extremes from March 1, 2018 and April 17, 2018.
1h
On the hourly chart, the pair performed a fixation below the Fibo level of 38.2% - 1.3112. As a result, the process of falling can be continued in the direction of the next correction level of 23.6% - 1.3052. The bullish divergence in the CCI indicator is maturing, its formation will allow us to count on some growth of the pair. The consolidation of the pair's rate above the Fibo level of 38.2% can be similarly interpreted as a turn in favor of the British currency and expect some growth in the direction of the corrective level of 50.0% - 1.3159.
The Fibo grid is built on extremes from July 9, 2018 and July 19, 2018.
Recommendations for traders:
Purchases of the GBP / USD pair can be opened with a target of 1,3159 and a stop loss order under the correction level of 38.2% if a close above the Fibo level is 1.3112 (hourly chart), especially in conjunction with the bullish divergence.
The GBP / USD pair can now be traded with a target of 1.3052 and a Stop Loss order above the correction level of 38.2%, as there was a close under the Fibo level of 1.3112. Hold sales can be before the formation of bullish divergence (maturing CCI).
The material has been provided by InstaForex Company - www.instaforex.com