Analysis of GBP/USD divergences for May 1st. The pound surprised by the growth.

4h

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As seen on the 4-hour chart, the GBP/USD pair continues the growth process and closed above the Fibo level of 61.8% (1.2969). As a result, on May 1, the growth of quotations continued in the direction of the retracement level of 76.4% (1.3094). The rebound of the pair from the Fibo level of 76.4% will make it possible to expect a reversal in favor of the American dollar and a slight fall towards the retracement level of 61.8%. Fixing the pair above the Fibo level of 76.4% will work in favor of continuing growth in the direction of the next retracement level of 100.0% (1.3296).

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

1h

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As seen on the hourly chart, the GBP/USD pair closed above the retracement level of 50.0% (1.3031). Thus, the growth process can be continued today in the direction of the next Fibo level of 61.8% (1.3069). There are no emerging divergences on the current chart, although both indicators began to fall, despite the growth of the pair. The closing of quotations under the retracement level of 50.0% can be identified as a reversal in favor of the US currency and the beginning of a fall in the direction of the Fibo level of 38.2% (1.2992).

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 1.3069 and a stop loss order under the retracement level of 50.0% as the pair completed closing above 1.3031 (hourly chart).

Sell deals on GBP/USD pair can be opened with the target at 1.2992 and a stop loss order above the level of 50.0% if the pair closes below the level of 1.3031 (hourly chart).

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