4h
The currency pair GBP / USD on the 4-hour chart continues the fall in the direction of the Fibo level of 200.0% - 1.3047 after the formation of the bearish divergence in the MACD indicator. On July 30, the bullish divergence of the CCI indicator was formed, which allows us to count on a reversal in favor of the British currency and a slight increase in the direction of the corrective level of 161.8% - 1.3301. Passing the quotes of the last low divergence will work in favor of the US dollar and the continuation of the fall of the pair. The consolidation of the rate under the Fibo level of 200.0% will increase the chances of falling towards the next correction level of 261.8% - 1.2638.
The Fibo grid is built on extremes from March 1, 2018, and April 17, 2018.
1h
On the hourly chart, the pair quotes fixed under the correction level of 38.2% - 1.3111. As a result, the fall can be continued in the direction of the next corrective level of 23.6% - 1.3052. Brewing divergences today is not observed in any indicator. Fixing of quotes above the level of Fibo 38.2% will work in favor of the British currency and some growth in the direction of the correction level of 50.0% - 1.3160.
The Fibo grid is built on extremes 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 a close above the Fibo level is 1.3111 (hourly 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