Analysis of GBP / USD Divergences for February 20. There are two possible rebounds with the pair down

4h

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The GBP / USD pair on the 4-hour chart completed the passage of the last peak of the bearish divergence and consolidation above the Fibo level of 61.8% - 1.2969. Thus, the growth process continues on February 20 in the direction of the correction level of 76.4% - 1.3094. Resetting the pair from this level will allow traders to expect a reversal in favor of the American currency and a slight fall towards the correctional level of 61.8%. Closing the pair above the level of 76.4% will increase the chances of continued 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

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On the hourly chart, the pair continues the growth process in the direction of the correction level of 23.6% - 1.3088. The release of the pair's course from this Fibo level will make it possible to count on a reversal in favor of the US currency and a return to the correction level of 38.2% - 1.3008. The ripening divergence on February 20 is not observed. Closing quotes above the Fibo level of 23.6% will increase the probability of continued growth in the direction of the correction level of 0.0% - 1.3217.

The Fibo grid was built on extremes from January 15, 2019, and January 25, 2019.

Recommendations to traders:

New purchases of the GBP / USD pair can be made with a target of 1.3217 and a Stop Loss order below the level of 23.6% if the pair closes above 1.3088 (hourly chart).

Sales of the GBP / USD pair can be carried out with the target of 1.308 and a Stop Loss order above the level of 23.6% if the pair bounces off the level of 1.3088 (hourly chart).

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