Analysis of GBP/USD divergence for April 1. The pound began to recover due to divergence

4h

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As seen on the 4-hour chart, the GBP/USD pair rebounded from the retracement level of 76.4% (1.3098), a reversal in favor of the US dollar and a fall to the Fibo level of 61.8% (1.2969). The end of the quotations of the pair on April 1 from the level of 61.8% will allow us to count on a reversal in favor of the British pound and some growth in the direction of the retracement level of 76.4%. Fixing the pair below the Fibo level 61.8% will work in favor of continuing to fall in the direction of the next retracement level 50.0% (1.2868).

The Fibo grid is built on the grounds of the extremums from September 20, 2018, and January 3, 2019.

1h

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As seen on the hourly chart, the pair reversed in favor of the American currency after the end of the retracement level of 61.8% (1.3121) and the fall to the Fibo level of 100.0% (1.2961). The bullish divergence at the CCI indicator worked in favor of the pound sterling and the pair began to return to the retracement level of 76.4% (1.3061). Rebounding the pair from this level will allow us to count on a reversal in favor of the US currency and the resumption of a fall in the direction of the Fibo level of 100.0%. There are no emerging divergences on both charts today.

The Fibo grid is built on the grounds of the extremums from March 11, 2019, and March 13, 2019.

Trading advice:

Buy deals on GBP/USD pair can be opened with the target at 1.3061 and the stop-loss order under the low divergence, as bullish divergence was formed (hourly chart).

Sell deals on GBP/USD pair can be carried out with the target at 1.2961 and a stop-loss order above the level of 76.4% if the pair bounces off the level of 1.3061 (hourly chart).

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