Analysis of GBP / USD Divergences for January 21. The pound began to lose ground

4h

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The currency pair GBP / USD on the 4-hour chart performed a reversal in favor of the American currency and a fall to the correctional level of 50.0% - 1.2869. Rebounding the pair from the Fibo level of 50.0% will make it possible to count on a reversal in favor of the British currency and some growth in the direction of the correction level of 61.8% - 1.2970. Closing quotes below the Fibo level of 50.0% will increase the pair's chances of continuing falling towards the next correction level of 38.2% - 1.2765.

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 currency pair also began falling quotations, in the direction of the correction level of 100.0% - 1.2815. However, the correction level of 50.0% on the 4-hour chart is more important and the release from it will work in favor of the beginning of the pair's growth. Rebounding quotes from the Fibo level of 100.0% will similarly work in favor of some growth in the direction of the correctional level of 127.2% - 1.2916. There is no maturing divergence in any indicator.

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 the target of 1.2970 and a Stop Loss order under the level of 50.0% if the pair bounces off of the level of 1.2869 (4-hour chart).

Sales of the GBP / USD currency pair can be made with the target of 1.2765 and a Stop Loss order above the 50.0% level if the pair closes below the level of 1.2869 (hourly chart).

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