4h
On the 4-hour chart, the GBP / USD currency pair quotes were first consolidated below the correction level of 61.8% - 1.2905, and then rebound from it. As a result, the pair completed a fall to the Fibo level of 76.4% - 1.2813. On October 26, a bullish divergence emerged near the CCI indicator, which allows us to expect a reversal in favor of the British currency and some growth towards the correctional level of 61.8%. Rebounding quotes from the Fibo level of 76.4% will similarly work in favor of the beginning of the pair's growth Fixing the rate under the Fibo level of 76.4% will increase the chances for a further fall in the direction of the correction level of 100.0% - 1.2662.
The Fibo grid was built according to extremums from August 15, 2018, and September 20, 2018.
1h
On the hourly chart, the pair fixed under the correctional level of 127.2% - 1.2833. Thus, the process of falling can be continued in the direction of the next correctional level of 161.8% - 1.2718. Bullish divergence in the MACD indicator allows you to count on some growth of the pair. After its formation, enough time had passed, and the pair could not even close above the Fibo level of 127.2%. Fixing quotations above the correction level of 127.2% will still work in favor of the euro currency and the start of growth in the direction of the correction level of 100.0% - 1.2924.
The Fibo grid was built on extremes from October 4, 2018, and October 12, 2018.
Recommendations to traders:
Purchases of the GBP / USD currency pair can be made with a target of 1.2924 and a Stop Loss order under the correction level of 127.2% if the pair closes above 1.2833 (hourly chart).
Selling of the currency pair GBP / USD will be possible with the target at 1.2718 and a Stop Loss order above the level of 127.2% if the pair closes under the last low divergence (hourly chart).
The material has been provided by InstaForex Company -
www.instaforex.com