Analysis of the divergence of GBP / USD on October 10. The pound received support from the divergence

4h

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The GBP / USD currency pair reversed in favor of the British currency after the formation of a small bullish divergence in the CCI indicator. As a result, a new growth began in the direction of the correctional level of 38.2% - 1.3316. New emerging divergences October 10 is not one indicator. Rebounding the course of the pair from the Fibo level of 38.2% will make it possible to expect a reversal in favor of the US dollar and a slight drop in the direction of the correction level of 23.6%.

The Fibo grid was built according to extremums of April 17, 2018, and August 15, 2018.

1h

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The hourly chart also formed a bullish divergence at the CCI indicator, which allowed the pair to reverse in favor of the pound sterling, start to grow and close above the Fibo level of 61.8% - 1.3153. Thus, the growth process can be continued in the direction of the next correction level of 76.4% - 1.3208. At the same time, the bearish divergence is brewing at the MACD indicator. The education will allow traders to expect a reversal in favor of the American currency and some decline.

The Fibo grid was built according to extremums of September 20, 2018, and October 4, 2018.

Recommendations to traders:

Purchases of the GBP / USD currency pair can be made now with a target of 1.3208 and a Stop Loss order under the correction level of 61.8%, since the closing above the Fibo level of 1.3153 (hourly chart) has been completed.

The currency pair of GBP / USD can be sold with a target of 1.3110 and a Stop Loss order above the level of 61.8% if the pair closes below the Fibo level of 1.3153 (hourly chart) or if there is a bearish divergence with MACD.

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