4h
The GBP / USD pair on the 4-hour chart reversed in favor of the US currency after the formation of the bearish divergence in the MACD indicator and began the process of falling towards the correction level of 200.0% at 1.3047. On July 27, there is maturing bullish divergence in the CCI indicator. Its formation will make it possible to expect the turn of the pair in favor of the British currency and the resumption of growth towards the correction level of 161.8% at 1.3301. Clearing of quotations from the level of Fibo 200.0% will similarly work in favor of the pound sterling. Pairing the pair under the correction level of 200.0% will increase the chances of continuing the fall towards the next Fibo level of 261.8%.
The Fibo grid was established on boundaries from March 1, 2018 and April 17, 2018.
1h
On the hourly chart, the quotes cleared from the Fibo level of 61.8% to 1.3208, a reversal in favor of the US currency and a fixation under the correction level of 38.2% to 1.3111. As a result, the fall of the pair could be continued today in the direction of the next Fibo level of 23.6% - 1.3052. Brewing divergences today is not observed in any indicator. Fixing the pair above the Fibo level of 38.2% will work in favor of the currency of England and the beginning of the growth of quotations in the direction of the corrective level of 50.0% at 1.3160.
The Fibo grid was established on boundaries from July 9, 2018 and July 19, 2018.
Recommendations for traders:
Purchases of the GBP / USD pair can be opened with a target of 1.3160 and a stop loss order under the correction level of 38.2%, if there is a close above the Fibo level of 1.3111 (hourly chart) or if a bullish divergence is formed on the 4-hour chart.
The GBP / USD pair can now be traded with a target of 1.3052 and a Stop Loss order above the correction level of 38.2%, as there was a close under the Fibo level of 1.3111.
The material has been provided by InstaForex Company - www.instaforex.com