4h
The bullish divergence of the CCI indicator allowed the GBP / USD currency pair to resume the growth process in the direction of the corrective level of 38.2% - 1.3316. Today, there are no new brewing divergences in any indicator. The pair's retreat from the Fibo level of 38.2% will allow traders to count on a reversal in favor of the US dollar and a slight drop towards the correction level of 23.6% to 1.3067. Fixing the quotes above the Fibo level of 38.2% will increase the chances of continuing growth towards the next correction level of 50.0% - 1.3516.
The Fibo grid is built on extremes from April 17, 2018, and August 15, 2018.
1h
On the hourly chart, the pair executed a reversal in favor of the British currency and a rise to the correction level of 200.0% - 1.3301 with a rebound from it. As a result, a reversal in favor of the US dollar began and a drop in the direction of the corrective level of 161.8% - 1.3202 began. Brewing divergences are not observed today. Fixing the quotes above the Fibo level of 200.0% will increase the chances for further growth in the direction of the next correction level of 261.8% - 1.3462.
The Fibo grid is built on extremes from August 30, 2018, and September 5, 2018.
Recommendations for traders:
Purchases of the GBP / USD currency pair can be carried out for the purpose of 1.3462 and a stop loss order under the correction level of 200.0% if a close above the Fibo level is 1.3301 (hourly chart).
Sales of the GBP / USD currency pair can now be carried out with a target of 1.3202 and a Stop Loss order above the level of 200.0%, since the pair has completed the retreat from the Fibo level 1.3301.
The material has been provided by InstaForex Company -
www.instaforex.com