4h
The GBP / USD currency pair on the 4-hour chart continues to trade within the sideways range indicated by the blue rectangle. Bullish divergence did not allow the pair to complete strong growth. Thus, on December 28, the pair can rise to the upper side range. Closing the pair over this range will increase the likelihood of continued growth in the direction of the correction level of 76.4% - 1.2812. Rebound from it will work in favor of the US currency and return to the lower region of the range.
The Fibo grid was built on extremes from August 15, 2018, and September 20, 2018.
1h
On the hourly chart, after the formation of the second bullish divergence at the MACD indicator, the quotes of the pair nevertheless performed a reversal in favor of the British currency. As a result, the process of growth began in the direction of the correction level of 100.0% - 1.2696. Rebounding the Fibo level of 100.0% quotes will allow traders to expect a reversal in favor of the US currency and a slight decline in the direction of the correction level of 127.2% - 1.2566. Closing quotes above Fibo level of 100.0% will increase the chances for further growth in the direction of the next correction level of 76.4% - 1.2809.
The Fibo grid is built on extremes from October 30, 2018, and November 7, 2018.
Recommendations to traders:
Purchases of the GBP / USD currency pair can be carried out now with the target of 1.2696 and the Stop Loss order under the bullish divergence low since a new bullish divergence has formed (hourly chart).
Sales of the GBP / USD currency pair can be carried out with a target of 1.2566 and a Stop Loss order above the level of 100.0% if the pair bounces off of the level of 1.2696 (hourly chart).
The material has been provided by InstaForex Company -
www.instaforex.com