4h
The currency pair GBP / USD on the 4-hour chart reversed in favor of the US dollar, after the bearish divergence of the MACD indicator, and the decline towards the Fibo level was 261.8% - 1.2637. On September 3, a bullish divergence was formed at the CCI indicator, which allows traders to expect a turn in favor of the British currency and resumption of growth in the direction of the correction level of 200.0% - 1.3047. The consolidation of the pair's rate above the Fibo level of 200.0% will work in favor of continuing growth towards the next correction level of 161.8% - 1.3301.
The Fibo grid is built on extremes from March 1, 2018, and April 17, 2018.
1h
On the hourly chart, the pair performed fixing under the correction level of 50.0% - 1.2937. However, there was also a bullish divergence in the MACD indicator, which allows you to count on the pair's turn in favor of the British currency and some growth. Fixing the quotes above the Fibo level of 50.0% will increase the pair's chances of growth in the direction of the correction level of 61.8% - 1.3002. Passing the quotes of the last divergent low will work in favor of the US currency and the resumption of a fall towards the corrective level of 38.2% - 1.2872.
The Fibo grid is built on extremes from July 26, 2018, and August 15, 2018.
Recommendations for traders:
Purchases of the GBP / USD pair will be possible with the target of 1,3002 and a stop loss order under the correction level of 50.0% if a close above the Fibo level is 1,2937 (hourly chart).
Sales of the GBP / USD pair will be possible with the target of 1,2872 and a Stop Loss order above the correction level of 50.0% if the pair passes the last low of the bullish divergence.
The material has been provided by InstaForex Company - www.instaforex.com