Analysis of GBP / USD Divergences as of August 29. Pound sterling is ready to fall

4h

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The GBP / USD pair on the 4-hour chart executed a new U-turn in favor of the US dollar, again without any signal. Thus, today the process of falling quotations can be continued in the direction of the next correctional level of 261.8% - 1.2938. There are no maturing divergences in any indicator. Goals will be determined on the hourly chart.

The Fibo grid is built on extremes from March 1, 2018, and April 17, 2018.

1h

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On the hourly chart, the pair after the formation of the bearish divergence in the indicator MACD performed a turn in favor of the US currency and fixing under the correction level of 38.2% - 1,2872. As a result, on August 29, the drop in quotations could be continued in the direction of the next Fibo level of 23.6% - 1.2791. Brewing divergences are not observed. The closing of the exchange rate over the correction level of 38.2% can be interpreted as a reversal in favor of the British currency and expect a resumption of growth towards the corrective level of 50.0% to 1.2937.

The Fibo grid is built on extremes from July 26, 2018 and August 15, 2018.

Recommendations for traders:

New purchases of the GBP / USD pair can be carried out with the target of 1.2937 and a stop loss order under the correction level of 38.2% if a close above the Fibo level is 1,2872 (hourly chart).

Sales of the GBP / USD pair can now be carried out with the target of 1.2791 and a Stop Loss order above the correction level of 38.2%, as there was a close under the Fibo level of 1.2882.

The material has been provided by InstaForex Company - www.instaforex.com