Analysis of the GBP / USD Divergences for October 8. The growth of the pound stops bear divergence

4h

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The GBP / USD currency pair consolidated above the correction level of 23.6% - 1.3067 and continues the process of growth in the direction of the Fibo level of 38.2% - 1.3316. The maturing bearish divergence at the MACD indicator allows traders to expect a reversal in favor of the American dollar and a resumption of decline in the direction of the correction level of 0.0% - 1.2662. Fixing the rate under the Fibo level of 23.6% will similarly work in favor of the US dollar.

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

1h

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On the hourly chart, the quotes of the pair completed above the correction level of 38.2% - 1.3101. However, the bearish divergence allows traders to expect a reversal in favor of the US currency and a slight drop in the pair. Fixing quotes below the Fibo level of 38.2% will increase the probability of a fall beginning in the direction of the correctional level 50.0% - 1.3041. A pair of the last divergence peak will work in favor of the pound sterling and continuing growth in the direction of the next correction level of 23.6% - 1.3176.

The Fib net is built on extremums from September 5, 2018, and September 20, 2018.

Recommendations to traders:

New purchases of the GBP / USD currency pair can be made with the target of 1.3176 and a Stop Loss order under the correction level of 38.2% if the last divergence peak is passed (hourly chart).

To sell the currency pair GBP / USD it will be possible with a target of 1.3041 and a Stop Loss order above the level of 38.2% if the pair closes below the Fib level of 1.3101 (hourly chart).

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