4h
The GBP / USD pair on the 4-hour chart continues the growth process towards the corrective level of 161.8% - 1.3301. July 26 is maturing bearish divergence in the MACD indicator. Its formation will allow traders to expect a reversal in favor of the US currency and a slight drop towards the correction level of 200.0% - 1.3047. End of quotes from the level of Fibo 161.8% will similarly work in favor of the beginning of the fall of the pair. Strengthening the exchange rate above the correction level of 161.8% will increase the likelihood of continued growth towards the next Fibo level of 127.2% - 1.3530.
The Fibo grid is built on extremes from March 1, 2018, and April 17, 2018.
1h
On the hourly chart, quotations have made growth to the correction level of 61.8% - 1.3208. The fall of the pair's rate from the Fibo level of 61.8% will allow traders to count on a reversal in favor of the US currency and a slight drop towards the correction level of 50.0% to 1.3160. Brewing divergences today is not observed in any indicator. The consolidation of the pair's rate above the Fibo level of 61.8% will increase the chances for further growth in the direction of the next correction level of 76.4% - 1.3266.
The Fibo grid is built on extremes from July 9, 2018, and July 19, 2018.
Recommendations for traders:
New purchases of the GBP / USD pair can be opened with a target of 1.3266 and a stop loss order under the correction level of 61.8% if there is a close above the Fibo level of 1.3208 (hourly chart).
Sell GBP / USD will be possible with targets of 1.3160 and 1.3111 and a Stop Loss order above the correction level of 61.8% if there is a retreat from the Fibo level of 1.3208, especially in conjunction with the bearish divergence on the 4-hour chart.
The material has been provided by InstaForex Company - www.instaforex.com