Analysis of the divergence of GBP / USD for January 29. Bullish divergence can help the pound.

4h

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The currency pair GBP / USD on the 4-hour chart completed closing above the Fibo level of 76.4% - 1.3098. Thus, on January 29, the growth process can be continued in the direction of the next correction level of 100.0% - 1.3300. Bovine divergence at CCI indicator is brewing, which increases the likelihood of resumption of growth in the direction of the correctional level of 100.0%. Closing a pair below the Fibo level of 76.4% will work in favor of the American dollar.

The Fibo grid is built on extremums from September 20, 2018, and January 3, 2019.

1h

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On the hourly chart, the currency pair completed under the correction level of 200.0% - 1.3192. As a result, the process began to fall in the direction of the Fibo level of 161.8% - 1.3044. None of the indicators have ripening divergences. Fixing a pair of quotes above the correction level of 200.0% will work in favor of the pound sterling and the resumption of growth in the direction of the correction level of 261.8% - 1.3418.

The Fibo grid is built on extremes from December 31, 2018, and January 3, 2019.

Recommendations to traders:

Purchases of the currency pair GBP / USD can be carried out with the target of 1.3418 and a Stop Loss order below the level of 200.0% if the pair closes above the level of 1.1919 (hourly chart).

The currency pair GBP / USD can be sold now with the target at 1.3044 and a Stop Loss order above the level of 200.0%, as the pair completed the closure below the level of 1.3192 (hourly chart).

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