4h
As seen on the 4-hour chart, the GBP/USD pair has completed the consolidation under the retracement level of 61.8% (1.2969). Thus, the fall of quotations continues on May 15 in the direction of the next Fibo level of 50.0% (1.2867). The rebound of the pair from the Fibo level of 50.0% will allow traders to expect a reversal in favor of the British pound and some growth in the direction of the retracement level of 61.8%. Fixing the quotes under the Fibo level of 50.0% will increase the probability of a further fall in the direction of the next 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 also continues the process of falling in the direction of the retracement level of 100.0% (1.2865). Today, a bullish divergence is brewing at the CCI indicator, which allows us to expect a reversal of the pair in favor of the currency of England and some growth towards the Fibo level of 76.4% (1.2939). Reversal of quotes from the retracement level of 100.0% will similarly work in favor of the beginning of the pair's growth. The consolidation of the rate under the Fibo level of 100.0% will increase the chances of a further fall in the direction of the next retracement level of 127.2% (1.2782).
The Fibo grid is built according to the extremes of April 25, 2019, and May 3, 2019.
Forecast for GBP/USD and trading recommendations:
Buy deals on GBP/USD pair can be opened with the target at 1.2939 and a stop loss order under the retracement level of 100.0% if the pair bounces off the level of 1.2865 (hourly chart), especially in combination with the formation of a bullish divergence.
Sell deals on GBP/USD pair can be opened with the target at 1.2865 and a stop loss order above the level of 76.4%, as the pair has completed consolidation below the retracement level of 1.2939 (hourly chart), and keep them open until the formation of a bullish divergence.
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