4h
The GBP / USD currency pair reversed in favor of the American currency and consolidation below the Fibo level of 23.6% - 1.3067. As a result, the fall in quotations continues today in the direction of the next correction level of 0.0% - 1.2662. The ripening divergence on October 1 is not observed. Fixing the pair above the Fibo level of 23.6% can be interpreted as a reversal in favor of the British currency and we expect a resumption of growth in the direction of the correctional level of 38.2% - 1.3316.
The Fibo grid was built on extremes from April 17, 2018, and August 15, 2018.
1h
On the hourly chart, the currency pair continues the process of falling after the formation of a bearish divergence and completed the close below the correction level of 50.0% - 1.3041. Thus, it is expected to continue falling in the direction of the Fibo level 61.8% - 1.2981. There are no maturing divergences on the current chart. Fixing quotes above the correction level of 50.0% will allow traders to rely on some growth of the pair in the direction of the correctional level of 38.2% - 1.3101.
The Fib net is built on extremums from September 5, 2018, and September 20, 2018.
Recommendations to traders:
Purchases of the GBP / USD currency pair can be carried out with the target of 1.3101 and a Stop Loss order under the correction level of 50.0%, if there is a closure above the Fibo level of 1.3041 (hourly chart).
The currency pair GBP / USD can be sold now with a target of 1.2981 and a Stop Loss order above the 50.0% level, as the pair completed the closure below the Fibo level 1.3041 (hourly chart).
The material has been provided by InstaForex Company -
www.instaforex.com