4h
The currency pair GBP / USD on the 4-hour chart completed growth to the correctional level of 76.4% - 1.3098. The release of quotations from this Fibo level will allow traders to expect a reversal in favor of the American currency and a slight drop in the direction of the correction level of 61.8% - 1.2970. January 24, the bearish divergence is brewing at the CCI indicator. The education will increase the likelihood of a pair rebound from the Fibo level of 76.4%. Closing above this level will work in favor of continuing growth in the direction of the next correction level of 100.0% - 1.3300.
The Fibo grid is built on extremes from September 20, 2018, and January 3, 2019.
1h
On the hourly chart, the pair completed a close above the Fibo level of 161.8% - 1.3049, however, on the 4-hour chart, the release is possible and bearish divergence is possible. As a result, the pair on the current chart can turn in favor of the US dollar right now. Closing quotes below the Fibo level of 161.8% will similarly work in favor of the beginning of a pair fall in the direction of the correction 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 currency pair GBP / USD can be made with the target of 1.3192 and a Stop Loss order below the level of 76.4% if the pair closes above the level of 1.3094 (4-hour chart).
Sales of the currency pair GBP / USD can be carried out with the target of 1.2970 and a Stop Loss order above the level of 76.4% if the pair bounces off the level of 1.3094 (4-hour chart), especially in conjunction with the bearish divergence.
The material has been provided by InstaForex Company - www.instaforex.com