4h
The GBP / USD currency pair reversed in favor of the US currency after the formation of the bearish divergence of the CCI indicator. As a result, the process of falling quotations can be continued in the direction of the correctional level of 23.6% - 1.3067 on the 4-hour chart. Rebounding the pair from the Fibo level of 23.6% will allow traders to count on a turn in favor of the British currency and some growth in the direction of the correction level of 38.2% - 1.3316. Fixing the course of the pair below the Fibo level of 23.6% will increase the chances of continuing falling towards the next correctional 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 currency pair reversed in favor of the American currency and consolidation the below the Fibo level of 76.4% - 1.3208, as well as falling to the correction level of 61.8% - 1.3153. Rebounding quotes from the Fibo level of 61.8% will make it possible to count on a reversal in favor of the British currency and a return to the correction level of 76.4%. The ripening divergences on October 17th are not observed in any indicator. Fixing quotes below the Fibo level of 61.8% will increase the probability of a further fall in the direction of the next correction level of 50.0% - 1.3110.
The Fibo grid was built according to extremums of September 20, 2018, and October 4, 2018.
Recommendations to traders:
New purchases of the GBP / USD currency pair can be made with the target of 1.3208 and a Stop Loss order under the correction level of 61.8% if the pair bounces off the level of 1.3153 (hourly chart).
The currency pair GBP / USD will be sold with targets at 1.3110 and 1.3065 and a Stop Loss order above 61.8% if the pair closes below the Fibo level of 1.3153 (hourly chart).
The material has been provided by InstaForex Company -
www.instaforex.com