The pair GBP / USD on the 4-hour chart completed a return to the correctional level of 100.0% – 1.3300. A bearish divergence was formed in the CCI indicator, which allows traders to count on a turn in favor of the American dollar and a slight drop in the direction of the correction level of 76.4% – 1.3094, and also increases the rebound probability from the Fibo level 100.0% – 1.3300. Closing the pair above the peak of the divergence and the level of 100.0% will increase the likelihood of further growth of quotations in the direction of the next correction level of 127.2% – 1.3530.
The Fibo grid is built on extremums from September 20, 2018, and January 3, 2019.
On the hourly chart, the pair completed growth to the correction level of 100.0% – 1.3349 on the new Fibo grid, bounce back and turn in favor of the American currency, falling and closing below the Fibo level of 76.4% – 1.3257. As a result, on March 14, the process of falling quotations can be continued in the direction of the correctional level of 61.8% – 1.3202. The bearish divergence of the MACD indicator increases the pair’s chances of continuing the fall. Closing the rate of 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 100.0%.
The Fibo grid is built on extremes from February 14, 2019, and February 27, 2019.
Recommendations to traders:
New purchases of the GBP / USD pair can be made with the target of 1.3349 and a Stop Loss order below the level of 76.4% if the pair closes above the level of 1.3357 (hourly chart).
Sales of the GBP / USD pair can be carried out now with a target of 1.3202 and a Stop Loss order above the level of 76.4%, as the pair completed closing at 1.3357 (hourly chart).
The material has been provided by InstaForex Company – www.instaforex.com