4h
The currency pair GBP / USD on the 4-hour chart completed closing above the correction level of 50.0% - 1.2869, which allows us to expect some growth in the direction of the Fibo level of 61.8% - 1.2970. The ripening divergences on January 22 are not observed in any indicator. Fixing the pair under the Fibo level of 50.0% will work in favor of the American dollar and resuming the fall in the direction of the correction level of 38.2% - 1.2765. The bearish hourly divergence supports this option.
The Fibo grid is built on extremes from September 20, 2018, and January 3, 2019.
1h
On the hourly chart, the quotes of the pair completed growth to the level of correction of 127.2% - 1.2916, but the bearish divergence at the CCI indicator worked in favor of the US dollar and resuming the fall in the direction of the correctional level of 100.0% - 1.2815. Fixing quotations above the Fibo level of 127.2% can be interpreted as a reversal in favor of the British currency and we expect a resumption of growth in the direction of the correction level of 161.8% - 1.3049.
The Fibo grid is built on extremes from December 31, 2018, and January 3, 2019.
Recommendations to traders:
Purchases of the currency pair GBP / USD can be made with the target of 1.3049 and a Stop Loss order below the level of 127.2% if the pair closes above the level of 1.2916 (hourly chart).
Sales of the currency pair GBP / USD can be carried out now with a target of 1.2815 and a Stop Loss order above the level of 127.2%, since a bearish divergence has formed (hourly chart).
The material has been provided by InstaForex Company - www.instaforex.com