4h
The GBP / USD currency pair on the 4-hour chart resumed the growth process in the direction of the correctional level of 76.4% - 1.2812. However, on January 10, a new bearish divergence at the MACD indicator is brewing, which allows traders to expect a reversal in favor of the US dollar and a slight decline in the direction of the correction level of 100.0% - 1.2662. Rebounding the pair from the Fibo level of 76.4% will similarly work in favor of the US currency. Closing quotes above the level of 76.4% will increase the chances for further growth in the direction of the next Fibo level of 61.8% - 1.2905.
The Fibo grid was built on extremes from August 15, 2018, and September 20, 2018.
1h
On the hourly chart, quotes rebounded from the correction level of 76.4% - 1.2725 with a turn in favor of the British currency and resumed growth in the direction of the correctional level of 100.0% - 1.2815. Rebounding the course of the pair from the Fibo level of 100.0% will make it possible to expect a reversal in favor of the American dollar and a slight drop in the direction of the level of 76.4%. Fixing the pair above the Fibo level of 100.0% will increase the chances of continued growth towards the next level of 127.2% - 1.2916.
The Fibo grid is built on extremes from December 31, 2018, and January 3, 2019.
Recommendations to traders:
Purchases of the GBP / USD currency pair can be made with a target of 1.2916 and a Stop Loss order below the level of 100.0% if the pair closes above 1.2815 (hourly chart).
Sales of the GBP / USD currency pair can be carried out with the target of 1.2725 and a Stop Loss order above the level of 100.0% if the pair bounces off of the level of 1.2815 (hourly chart).
The material has been provided by InstaForex Company - www.instaforex.com