Analysis of GBP / USD pair Divergences on August 17. Bullish divergence allows the pound to gain a little

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The GBP/USD currency pair reversed in favor of the British currency as shown on the 4-hour chart. It started to grow in the direction of the correction level of 200.0% at 1.3047. Passing the last low divergence of the pair will work in favor of the US currency and the resumption of a fall towards the Fibo level of 261.8% at 1.2638. The consolidation of the British pound major pair rate under the correction level of 261.8% will increase the probability of the decline to continue towards the correction level of 323.6% at 1.2230.

The Fibo grid was established on the boundaries of March 1, 2018 and April 17, 2018.

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On the hourly chart, the pair completed the fixation above the correction level of 200.0% at 1.2702, after the bullish divergence of the CCI indicator. Thus, the growth of quotations can be continued today in the direction of the correction level of 161.8% at 1.2800. Also, there is no visible divergence in any indicator this day. Fixation of the pair below the Fibo level of 200.0% can be interpreted as a reversal in favor of the US dollar and expect a resumption of the decline in the direction of the correction level of 261.8% at 1.2545.

The Fibo grid was established on the boundaries from July 19, 2018 and July 26, 2018.

Recommendations for traders:

Purchases of the GBP / USD pair can now be considered with the target of 1.2800 and Stop Loss order under the correction level of 200.0%, as there was a close above the Fibo level 1.2702 (hourly chart) with the formation of a bullish divergence.

New sales of the GBP / USD pair will be possible with the target of 1.2545 and a Stop Loss order above the correction level of 200.0% if there is a close under the Fibo level of 1.2702.

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