Analysis of GBP / USD Divergences for February 5th. Bullish divergence does not help the pound sterling

4h

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The currency pair GBP / USD on a 4-hour chart rebounded from the Fibo level of 76.4% - 1.3094 with a turn in favor of the American dollar. As a result, February 5 continues to fall in the direction of the correction level of 61.8% - 1.2969. Rebounding the pair from the Fibo level of 61.8% will allow traders to expect a reversal in favor of the British pound and some growth in the direction of the correction level of 76.4%. Closing quotes below the level of 61.8% will increase the chances of a further fall towards the next level correction of 50.0% - 1.2869.

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 quotes rebounded from the correctional level of 23.6% - 1.3088 and resumed the process of falling in the direction of the correction level of 38.2% - 1.3008. A new bullish divergence at the MACD indicator allows traders to expect a reversal in favor of the pound sterling and some growth in the direction of the Fibo level of 23.6%. The end of quotes from the level of 38.2% will similarly work in favor of the beginning of the pair's growth. Closing the pair below the Fibo level of 38.2% will work in favor of continuing to fall in the direction of the next correction level of 50.0% - 1.2943.

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

Recommendations to traders:

Purchases of the currency pair GBP / USD can be made with the target of 1.3088 and a Stop Loss order below the level of 38.2% if the pair bounces off the level of 1.308 (hourly chart).

New sales of the currency pair GBP / USD will be possible with the target of 1.2943 and a Stop Loss order above the level of 38.2% if the pair closes below the level of 1.3008 (hourly chart).

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