4h
The bullish divergence formed by the CCI indicator on the 4-hour chart allowed the GBP / USD currency pair to turn in favor of the British currency and resume the growth process in the direction of the correction level of 38.2% - 1.3316. September 18 is maturing bearish divergence in the MACD indicator. Its education will allow you to count on a turn in favor of the US currency and a return to the Fibo level of 23.6% - 1.3067. The consolidation of the pair's rate under the correction level of 23.6% will increase the probability of continuing the fall of quotations towards the next Fibo level of 0.0%.
The Fibo grid is built on extremes from April 17, 2018, and August 15, 2018.
1h
On the hourly chart, the pair performed a fixation above the Fibo level of 127.2% - 1.3112. Thus, the growth process continues in the direction of the next correction level of 161.8% - 1.3202. Brewing divergences on the current chart are not observed. The end of the quotations from the correction level of 161.8% will work in favor of the US currency and the beginning of the fall towards the corrective level of 127.2%.
The Fibo grid is built on extremes from August 30, 2018, and September 5, 2018.
Recommendations for traders:
The purchases of the GBP / USD currency pair can now be carried out with a target of 1.3202 and a Stop Loss order under the correction level of 127.2%, as there was a close above the Fibo level of 1.3112 (hourly chart), and hold until the bearish divergence formed on the 4-hour graphics.
The new sales of the GBP / USD currency pair will be possible with the target of 1.3112 and Stop Loss order above the correction level of 161.8% if the pair retreats from the Fibo level of 1.3202 or after the formation of the bearish divergence on the 4-hour chart with the Stop Loss order above the peak of this divergence.
The material has been provided by InstaForex Company - www.instaforex.com