Analysis of GBP/USD divergence for April 10. The pound after the euro rolled back from local highs

4h

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As seen on the 4-hour chart, the GBP/USD pair rebounded from the retracement level of 76.4% (1.3094) and a reversal in favor of the US dollar. As a result, the pair began the process of falling in the direction of the retracement level of 61.8% (1.2969). Fixing the pair's rate above the Fibo level of 76.4% will work in favor of the British pound and the resumption of growth in the direction of the retracement level 100.0% (1.3300). Today, there is no emerging divergence in any indicator.

The Fibo grid is built according to the extremums of September 20, 2018, and January 3, 2019.

1h

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As seen on the hourly chart, after the rebound from the retracement level of 50.0% (1.3122), the pair's quotes performed a reversal in favor of the US dollar and a fall to the Fibo level of 23.6% (1.3046). Thus, now it is possible to increase quotations in the direction of the retracement level of 38.2% (1.3087). There are also no emerging divergences on the current chart. Closing the pair below the Fibo level of 23.6% will increase the chances of a further fall in the direction of the next retracement level of 0.0% (1.2976).

The Fibo grid is built according to the extremums of March 27, 2019, and March 29, 2019.

Trading recommendations:

Buy deals on GBP/USD pair can be opened with a target at 1.3087 and a stop loss order under the retracement level of 23.6% as the pair completed closing above the level of 1.3046 (hourly chart).

Sell deals on GBP/USD pair can be opened with the target at 1.2976 and a stop loss order above the level of 23.6% if the pair completes below the level of 1.3046 (hourly chart).

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