4h
On the 4-hour chart, the quotes of the GBP / USD currency pair reversed in favor of the British currency and began the process of returning to the correction level of 23.6% - 1.3067. Quoting the quotes on October 24 from the Fibo level of 23.6% will allow traders to expect a reversal in favor of the US dollar and a resumption of decline in the direction of the 0.0% - 1.2662 correction level. Fixing the pair above the Fibo level of 23.6% will increase the chances for further growth in the direction of the next correction level of 38.2% - 1.3316.
The Fibo grid was built according to extremums of April 17, 2018, and August 15, 2018.
1h
On the hourly chart, the pair performed a new consolidation under the correctional level of 76.4% - 1,3003 after the formation of a bearish divergence in the CCI indicator. Thus, the fall of the pair can be continued in the direction of the next correctional level of 100.0% - 1.2924. The ripening divergences today are not observed in any indicator. Fixing quotations above the Fibo level of 76.4% will work in favor of the pound sterling and some growth in the direction of the correction level of 61.8% - 1.3051.
The Fibo grid was built on extremes from October 4, 2018, and October 12, 2018.
Recommendations to traders:
You can make purchases of the GBP / USD currency pair with a target of 1.3051 and a Stop Loss order under the correction level of 76.4% if the pair closes above the level of 1.3003 (hourly chart).
You can sell the GBP / USD currency pair now with a target of 1.2924 and a Stop Loss order above the level of 76.4%, as the pair completed closing below the Fibo level of 1.3003 (hourly chart) to form a bearish divergence.
The material has been provided by InstaForex Company - www.instaforex.com