4h
On the 4-hour chart, the GBP / USD currency pair quotes consolidated below the correction level of 23.6% - 1.3067. Thus, the process of falling quotations can be continued on October 19 in the direction of the next Fibo level of 0.0% - 1.2662. There is a bullish divergence at the CCI indicator. The education will allow us to count on a turn in favor of the British currency and on a return to the level of correction of 23.6%. Fixing the rate above the Fibo level of 23.6% will work in favor of continuing growth in the direction of the next correction level of 38.2% - 1.3316.
The Fibo grid was built according to extremums of April 17, 2018, and August 15, 2018.
1h
On the hourly chart, the pair, after the formation of the bearish divergence at the CCI indicator, performed a reversal in favor of the American currency and consolidation below the correction level of 61.8% - 1.3051. Thus, the fall in quotations continues in the direction of the next Fibo level of 76.4% - 1.3003. There are no new emerging divergences today. Reversing the quotations from the correction level of 76.4% will make it possible to expect a reversal in favor of the British currency and some growth towards the Fibo level of 61.8%. Fixing the rate of the pair under the correction level of 76.4% will increase the chances for a further fall in the direction of the next correction level of 100.0% - 1.2924.
The Fibo grid was built on extremes from October 4, 2018, and October 12, 2018.
Recommendations to traders:
Purchases of the GBP / USD currency pair can be made with the target of 1.3051 and a Stop Loss order under the correction level of 76.4% if the pair bounces off the level of 1.303 (hourly chart).
To sell a pair of GBP / USD, it will be possible with a target of 1.2924 and a Stop Loss order above the level of 76.4% if the pair closes below the Fibo level of 1.3003 (hourly chart).
The material has been provided by InstaForex Company - www.instaforex.com