4h
The GBP / USD pair on a 4-hour chart reversed in favor of the American dollar after the formation of a bearish divergence at the CCI indicator and began the process of returning to the correction level of 50.0% - 1.2869. Quoting the quotes on February 19 from the Fibo level of 50.0% will allow traders to expect a reversal in favor of the British currency and resumption of growth in the direction of the correction level of 61.8% - 1.2969. Closing the pair below the Fibo level of 50.0% will work in favor of continuing to fall in the direction of the next correction level of 38.2% - 1.2765.
The Fibo grid is built on extremes from September 20, 2018, and January 3, 2019.
1h
On the hourly chart, the pair reversed in favor of the US currency around the correctional level of 50.0% - 1.2943 and started falling in the direction of the correction level of 61.8% - 1.2878. Rebounding the pair's quotations from the Fibo level of 61.8% will make it possible to expect a reversal in favor of the British pound and some growth in the direction of the correction level of 50.0% - 1.2943. Closing the pair below the level of 61.8% will work in favor of a further fall in the direction of the next correction level of 76.4% - 1.2799.
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 under the level of 61.8% if the pair bounces off of the level of 1.2878 (hourly chart).
New sales of the GBP / USD pair will be possible with the target of 1.2799 and a Stop Loss order above the 50.0% level if the pair closes below the 1.2878 level (hourly chart).
The material has been provided by InstaForex Company - www.instaforex.com