4h
After the formation of a bearish divergence at the CCI indicator, the GBP / USD quotes continue to fall in the direction of the correctional level of 23.6% - 1.3067. Rebounding the pair from the Fibo level of 23.6% will make it possible to expect a turn in favor of the British currency and some growth in the direction of the correction level of 38.2% - 1.3316. There are no ripening divergences on October 18th. Fixing quotations under the Fibo level of 23.6% will increase the probability of a further fall in the direction of the next correction level of 0.0% - 1.2662.
The Fibo grid was built according to extremums of April 17, 2018, and August 15, 2018.
1h
On the hourly chart, the pair completed under the correction level of 50.0% - 1.3110. As a result, the process of falling continues in the direction of the next level of Fibo 38.2% - 1.3065. Bullish divergence is brewing at the CCI indicator, which allows you to count on a reversal in favor of the British currency and some growth of quotations. Rebounding the pair from the Fibo level of 38.2% will similarly allow to expect the beginning of the growth of the pair. Fixing below the correction level of 38.2% will work in favor of a further fall in the direction of the next Fibo level of 23.6% - 1.3010.
The Fibo grid was built according to extremums of September 20, 2018, and October 4, 2018.
Recommendations to traders:
Purchases of the GBP / USD currency pair can be made with the target of 1.3110 and a Stop Loss order under the correction level of 38.2% if the pair bounces off the level of 1.3065 (hourly chart), especially in conjunction with bullish divergence.
You can sell GBP / USD currency pair now with targets at 1.3065 and 1.3010 and a Stop Loss order above the 50.0% level, as the pair closed below the Fibo level at 1.3110 (hourly chart), and hold the deals until a bullish divergence is formed.
The material has been provided by InstaForex Company -
www.instaforex.com