4h
Quotations of the GBP / USD pair on the 4-hour chart made a turn in favor of the British currency and began a weak growth process towards the corrective level of 200.0% at 1.3047. The pair exited from the Fibo level of 200.0% will allow us to count on a reversal in favor of the US dollar and the resumption of the decline in the direction of the correction level of 261.8% to 1.2638. The breakthrough of the last low divergence will similarly work in favor of the US currency. Fixing the pair above the Fibo level of 200.0% will increase the probability of further growth towards the next correction level of 161.8% at 1.3301.
The Fibo grid was established on the boundary from March 1, 2018 and April 17, 2018.
1h
On the hourly chart, the pair made a return to the Fibo level of 100.0% at 1.2958. The pair retreated from the correction level of 100.0% will allow traders to expect a reversal in favor of the US currency and a slight drop towards the corrective level of 127.2% to 1.2888. Brewing divergences are not observed in any indicator. Fixing the quotes above the Fibo level of 100.0% will increase the chances of the pair to continue growing in the direction of the next correction level of 76.4% at 1.3018.
The Fibo grid was established on the boundary from July 19, 2018 and July 26, 2018.
Recommendations for traders:
Purchases of the GBP / USD pair can be carried out for the purpose of reaching 1.3018 and a stop loss order under the correction level of 100.0% if there is a close above the Fibo level of 1.2958 (hourly chart).
Sales of the GBP / USD pair will be possible with the target of 1.2888 and Stop Loss order above the correction level of 100.0% if there is a retreat from the level of 1.2958.
The material has been provided by InstaForex Company - www.instaforex.com