Analysis of GBP / USD Divergences for January 14th. The pound ran into an important level of 50.0%

4h

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The currency pair GBP / USD on the 4-hour chart completed the growth to the correctional level of 50.0% - 1.2869. Releasing the pair from this Fibo level will allow traders to expect a reversal in favor of the US dollar and a slight drop in the direction of the correction level of 38.2% - 1.2756. There are no indicators of ripening divergences on January 14th. Closing the pair above the Fibo level of 50.0% will increase the chances of continued growth towards the next correction level of 61.8% - 1.2970.

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

1h

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On the hourly chart, the quotes performed the third rebound from the correction level of 76.4% - 1.2725, turning in favor of the British currency and closing above the level of 100.0% - 1.2815. As a result, growth is expected to continue in the direction of the correction level of 127.2% - 1.2916. Bearing divergence is brewing at the CCI indicator. The formation of divergence will allow traders to expect a reversal in favor of the American currency and a return to the correction level of 100.0%.

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 carried out now with a target of 1.2916 and a Stop Loss order below the level of 100.0% since the pair completed the close above 1.2815 (hourly chart) and hold the purchases until a bearish divergence is formed.

Sales of the GBP / USD currency pair can be made with the target at 1.2725 and a Stop Loss order above the level of 100.0% if the pair closes below the level of 1.2815 (hourly chart).

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