H4
On the 4-hour chart, quotations of the GBP / USD pair continue the decline in the direction of the correction level of 261.8% at 1.2638. The bullish divergence of the CCI indicator was formed today, which allows us to count on a reversal in favor of the British currency and some growth in the direction of the corrective level of 200.0% at 1.3047. Passage by the pair on the last low divergence will work in favor of resuming the fall in the direction of the correction level of 261.8%. The pair's retracement from the Fibo level of 261.8% will allow for some growth.
The Fibo grid was established on the boundaries from March 1, 2018 and April 17, 2018.
H1
On the hourly chart, the pair completed the fixation at the correction level of 161.8% at 1.2800. As a result, the process of falling can be continued in the direction of the next correction level of 200.0% at 1.2702. Brewing divergences are not observed today. The pair's retracement from the Fibo level of 200.0% will allow us to count on a reversal in favor of the currency of England and a slight increase in the direction of the correction level of 161.8%. Fixing the quotes below the Fibo level of 200.0% will increase the likelihood of a further decline in the direction of the next correction level of 261.8% at 1.2548.
The Fibo grid was established on the boundaries from July 19, 2018 and July 26, 2018.
Recommendations for traders:
Purchases of the GBP / USD pair will be possible with a target of 1.2800 and a stop loss order under the correction level of 200.0% if the Fibo 1.2702 (hourly chart) breaks out.
New sales of the GBP / USD pair will be possible with the goal of 1.2548 and a Stop Loss order above the correction level of 200.0% if there is a close under the Fibo level 1.2702.
The material has been provided by InstaForex Company - www.instaforex.com