Analysis of GBP / USD Divergences on September 10. A new drop in the English currency is expected

H4

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On the 4-hour chart, the GBP / USD pair reversed in favor of the US currency after the formation of the bearish divergence of the CCI indicator and began the decline in the direction of the correction level of 261.8% at 1.2637. On September 10, there are no new brewing divergences in any indicator. The consolidation of the pair above the Fibo level of 200.0% will allow traders to count on the resumption of growth towards the corrective level of 161.8% at 1.3301. For a more accurate definition of goals and trends, we still consider the hourly chart.

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

1h

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On the hourly chart, there was a fixation under the correction level of 50.0% at 1.2913. As a result, the process of falling quotations can be continued in the direction of the next level of Fibo 38.2% at 1.2883. Brewing divergences are not observed today. The fixing of quotations above the correction level of 50.0% will work in favor of the pound sterling and will allow for some growth of the pair in the direction of the correctional level of 61.8% at 1.2944.

The Fibo grid was established on the boundaries from August 30, 2018 and September 5, 2018.

Recommendations for traders:

Purchases of the GBP / USD pair will be possible with targets of 1.2944 and 1.2982 and a Stop Loss order under the correction level of 50.0% if it closes above the correction level of 1.2913 (hourly chart).

Sales of the GBP / USD pair can now be carried out with targets of 1.2883 and 1.2845 and a Stop Loss order above the correction level of 50.0%, as the pair completed the close under the Fibo level of 1.2913.

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