H4
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.
H1
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