4h
The currency pair GBP / USD on the 4-hour chart performed a reversal in favor of the US currency and closing below the correction level of 76.4% - 1.3094. However, on February 4th, a bullish divergence appeared on the CCI indicator. This divergence allows us to expect a reversal in favor of the currency of England and some growth of the pair. Fixing quotations above the Fibo level of 76.4% will increase the chances of the pair to grow in the direction of the correctional level of 100.0% - 1.3300. Passing the last low divergence will work in favor of continuing to fall in the direction of 61.8% - 1.2969.
The Fibo grid is built on extremes from September 20, 2018, and January 3, 2019.
1h
On the hourly chart, quotes rebounded from the Fibo level of 161.8% - 1.3045 and a reversal in favor of the pound sterling. The bullish divergence of the MACD indicator was also formed. As a result, the quotes growth process can be continued in the direction of the correction level of 200.0% - 1.3187. Fixing quotes on the current chart below the Fibo level of 161.8% will work in favor of the US dollar and resuming the fall in the direction of the correction level of 127.2% - 1.2916.
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 carried out now with a target of 1.3187 and a Stop Loss order under the level of 161.8%, as the pair has completed the rebound from the level of 1.3045 (hourly chart) with the formation of bullish divergence.
New sales of the currency pair GBP / USD will be possible with a target of 1.2916 and a Stop Loss order above the level of 161.8% if the pair closes below the level of 1.3045 (hourly chart).
The material has been provided by InstaForex Company - www.instaforex.com