The currency pair GBP / USD on a 4-hour chart made a new turn in favor of the American currency after the formation of the second bearish divergence at the MACD indicator. As a result, the process of falling quotations can be continued on January 11 in the direction of the correction level of 100.0% – 1.2662. There are no maturing divergences on the current chart. Fixing the pair above the Fibo level of 76.4% will work in favor of the British currency and the resumption of growth in the direction of the correction level of 61.8% – 1.2905.
The Fibo grid was built on extremes from August 15, 2018, and September 20, 2018.
On the hourly chart, quotes made another rebound from the correction level of 76.4% – 1.2725 with a reversal in favor of the pound sterling and resumed growth in the direction of 100.0% – 1.2815. Today, a bearish divergence is brewing at the CCI indicator. The education will allow us to expect a reversal in favor of the US currency and a return to the Fibo level of 76.4%. A close below the level of 76.4% will increase the probability of a further fall in the direction of the next correctional level of 61.8% – 1.2669.
The Fibo grid is built on extremes from December 31, 2018, and January 3, 2019.
Recommendations to traders:
Purchases of the GBP / USD currency pair can be carried out now with a target of 1.2815 and a Stop Loss order below the level of 76.4% since the pair completed the rebound from the level of 1.2725 (hourly chart) and hold the purchases until a bearish divergence is formed.
Sales of the GBP / USD currency pair can be carried out with a target of 1.2669 and a Stop Loss order above the level of 76.4% if the pair closes below the level of 1.2725 (hourly chart).
The material has been provided by InstaForex Company – www.instaforex.com