4h
As seen on the 4-hour chart, the GBP/USD pair fell to the retracement level of 50.0% (1.2868) and rebounded from it with the formation of a bullish divergence in the CCI indicator. As a result, on April 26, the pair began the process of growth towards the retracement level of 61.8% (1.2969). The consolidation of the pair's quotes below the Fibo level of 50.0% can be interpreted as a reversal in favor of the American currency and expect a resumption of the fall in the direction of the retracement level of 38.2% (1.2765).
The Fibo grid is built according to the extremes of September 20, 2018, and January 3, 2019.
1h
As seen on the hourly chart, the GBP/USD pair closed below the Fibo level of 127.2% (1.2917), but also reversed in favor of the pound and returned to the retracement level of 127.2%. The rebound of quotations from the Fibo level of 127.2% will work in favor of the American dollar and the resumption of the fall in the direction of the retracement level of 161.8% (1.2842). Closing above the Fibo level of 127.2% will allow us to expect some growth in the direction of the retracement level 100.0% (1.2976).
The Fibo grid is built according to the extremes of March 29, 2019, and April 3, 2019.
Forecast for GBP/USD and trading recommendations:
Buy deals on GBP/USD pair can be opened with the target at 1.2976 and a stop loss order under the retracement level of 127.2% if the pair closes above 1.2917 (hourly chart).
Sell deals on GBP/USD pair can be opened with the target at 1.2842 and a stop loss order above the level of 127.2% if the pair bounces off of the level of 1.2917 (hourly chart).
The material has been provided by InstaForex Company - www.instaforex.com