4h
The GBP / USD pair on the 4-hour chart completed growth to the correction level of 76.4% - 1.3098 and rebound from it with a reversal in favor of the US dollar. As a result, on February 21, the process of falling in the direction of the correctional level of 61.8% - 1.2969 can be continued. The ripening divergences are not visible today in any indicator. Reversing quotes from the Fibo level of 61.8% will allow traders to count on a reversal in favor of the pound sterling and a return to the correction level of 76.4%.
The Fibo grid is built on extremes from September 20, 2018, and January 3, 2019.
1h
On the hourly chart, the pair rebounded from the correction level of 76.4% - 1.3111 with the formation of a bearish divergence at the MACD indicator. As a result, the pair made a turn in favor of the US currency and began to fall in the direction of the Fibo level of 50.0% - 1.2994. Reversing the pair's quotes from this level will allow us to expect a reversal in favor of the currency of England and the resumption of growth in the direction of the correction levels of 61.8% - 1.3047 and 76.4%. Closing below the Fibo level of 50.0% will increase the likelihood of a further fall in the direction of the next correction level of 38.2% - 1.2943.
The Fibo grid is built on extremes from January 25, 2019, and February 14, 2019.
Recommendations to traders:
New purchases of the GBP / USD pair can be made with the target of 1.3111 and a Stop Loss order below the level of 61.8% if the pair closes above 1.3047 (hourly chart).
Sales of the GBP / USD pair can be carried out now with the goal of 1.2994 and a Stop Loss order above the level of 61.8%, as the pair completed closing below the level of 1.3047 (hourly chart).
The material has been provided by InstaForex Company - www.instaforex.com