Analysis of the GBP / USD Divergences for February 6. Bullish divergence will help the pound grow a little

4h

iD_hK_Ccp5UaJ3XyDRA8iR0LgnbGx3ig1-6bpAd0

The currency pair GBP / USD on the 4-hour chart completed closing below the Fibo level of 61.8% - 1.2969. As a result, on February 6, the process of falling quotations can be continued in the direction of the next correction level of 50.0% - 1.2869. Fixing the rate of the pair above the Fibo level of 61.8% can be interpreted as a turn in favor of the British currency and one can expect some growth in the direction of the correction level of 76.4% - 1.3090. There are no emerging divergences today.

The Fibo grid is built on extremes from September 20, 2018, and January 3, 2019.

1h

HYN4QMNb6APSL-Z3Qu65VhNjcqfPTsn6-CbG97S1

On the hourly chart, the pair quotes performed a fall to the correction level of 50.0% - 1.2943. Rebounding the pair from this level will allow us to expect a reversal in favor of the British currency and some growth in the direction of the Fibo level of 38.2% - 1.3008. Also today, the bullish divergence of the MACD indicator is brewing, which increases the probability of rebound from the correction level of 50.0%. Passing the low of this divergence will work in favor of continuing to fall in the direction of the correctional level of 61.8% - 1.2880.

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 1.3008 and a Stop Loss order below the level of 50.0% if the pair bounces off of the level of 1.2943 (hourly chart), especially in conjunction with the bullish divergence.

New sales of the currency pair GBP / USD can be made with the target of 1.2880 and a Stop Loss order above the level of 50.0%, if the pair passes the low bullish divergence (hourly chart).

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