4h
As seen on the 4-hour chart, the GBP/USD pair resumed the growth process and closed above the Fibo level of 76.4% (1.3094). Thus, the growth of the pair's quotes on May 6 can be continued in the direction of the next retracement level of 100.0% (1.3296). There are no emerging divergences now. The closure of the pair below the Fibo level of 76.4% can be interpreted as a reversal in favor of the US currency and expect some fall in the direction of the retracement level OF 61.8% (1.2969).
The Fibo grid is built according to the extremes of September 20, 2018, and January 3, 2019.
1h
As seen on the hourly chart, the GBP/USD pair has achieved significant growth and closure above the retracement level of 76.4% (1.3117). However, the pair also performed a reversal in favor of the US dollar on this chart and a return to the Fibo level of 76.4%. The retreat of quotations from this level of correction will allow traders to count on a reversal in favor of the British pound and the resumption of the growth process in the direction of the retracement level of 100.0% (1.3195). Consolidation under the Fibo level of 76.4% will increase the chances of a further fall in the direction of the retracement level of 61.8% (1.3069).
The Fibo grid is built according to the extremes of April 3, 2019, and April 25, 2019.
Forecast for GBP/USD and trading recommendations:
Buy deals on GBP/USD pair can be opened with the target at 1.3195 and a stop loss order under the retracement level of 76.4% if the pair closes above 1.3117 (hourly chart).
Sell deals on GBP/USD pair can be opened with the target at 1.3069 and a stop loss order above the level of 76.4% if the pair closes below the level of 1.3117 (hourly chart).
The material has been provided by InstaForex Company - www.instaforex.com