Analysis of GBP/USD divergence for April 15. The pound is trading in a 100 point sideways range

4h

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As seen on the 4-hour chart, the GBP/USD pair performed another close above the Fibo level of 76.4% and then below it. As a result, traders can again expect some drop in quotations in the direction of the retracement level of 61.8% (1.2969). However, the movements in recent days are more like sideways, which is clearly seen on the hourly chart. Thus, the closing above/below the Fibo level of 76.4% is not a strong signal to buy or sell. There are no emerging divergences today.

The Fibo grid is built according to the extremums of September 20, 2018, and January 3, 2019.

1h

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As seen on the hourly chart, the pair quotes rebounded from the retracement level of 50.0% (1.3122), but the bullish divergence at the CCI indicator worked in favor of the British currency and consolidation above the Fibo level of 38.2% (1.3087). As a result, the pair can return to the retracement level of 50.0%. The new consolidation below the Fibo level of 38.2% can be interpreted as a reversal in favor of the American currency and we can expect a new drop in quotations in the direction of the retracement level of 23.6% (1.3046).

The Fibo grid is built according to the extremes of March 27, 2019, and March 29, 2019.

Trading recommendations:

Buy deals on GBP/USD pair can be opened with a target at 1.3122 and a stop loss order under the retracement level of 38.2% as the pair completed closing above the level of 1.3087 (hourly chart).

Sell deals on GBP/USD pair can be opened with the target at 1.3046 and a stop loss order above the level of 38.2% if the pair closes below the level of 1.3087 (hourly chart).

The material has been provided by InstaForex Company – www.instaforex.com