4h
The GBP / USD pair on the 4-hour chart almost reached the correction level of 61.8% - 1.2969, but reversed in favor of the American currency and closed below the Fibo level of 50.0% - 1.2869. Thus, on February 14, the fall in quotations can be continued in the direction of the correction level of 38.2% - 1.2765. There is no indicator of the emerging divergences today. Fixing the pair above the Fibo level of 50.0% will work in favor of the EU currency and the start of a new growth in the direction of the correction level of 61.8%.
The Fibo grid is built on extremes from September 20, 2018, and January 3, 2019.
1h
On the hourly chart, the pair similarly performed a reversal in favor of the US dollar and closing below the correction level of 61.8% - 1.2878. As a result, quotes in the direction of the Fibo level of 76.4% - 1.2799 are expected to fall on this chart. Fixing the pair above the correction level of 61.8% will work in favor of the pound sterling and some growth in the direction of the Fibo level of 50.0% - 1.2943. Rebounding from the correction level of 61.8% will increase the chances for a further fall.
The Fibo grid was built on extremes from January 15, 2019, and January 25, 2019.
Recommendations to traders:
Purchases of the GBP / USD pair can be made with a target of 1.2943 and a Stop Loss order below the level of 61.8% if the pair closes above 1.2878 (hourly chart).
Sales of the GBP / USD pair can be carried out with the target of 1.2799 and a Stop Loss order above the level of 61.8% if the pair bounces off of the level of 1.2878 (hourly chart).
The material has been provided by InstaForex Company - www.instaforex.com