The currency pair GBP / USD continues the process of growth in the direction of the correction level of 38.2% – 1.3316 after the formation of a bullish divergence in the CCI indicator. The end of October 11 quotations from the Fibo level of 38.2% will allow traders to expect a reversal in favor of the US currency and a slight decline in the direction of the correction level of 23.6% – 1.3067. New emerging divergences in the current chart are not observed in any indicator.
The Fibo grid was built according to extremums of April 17, 2018, and August 15, 2018.
On the hourly chart, three bearish divergences were formed at once, and all of them were at the MACD indicator. Each of them allowed the pair to make a small fall, after which the growth process was resumed. As a result, the pair completed closing above the Fibo level of 76.4% – 1.3208 and, thus, the growth process can be continued in the direction of the next level of correction 100.0% – 1.3298. Fixing quotations below the Fibo level of 76.4% will work in favor of some fall in the direction of the correction level of 61.8% – 1.3153.
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 at 1.3398 and the Stop Loss order under the correction level of 76.4% if the peak of the last divergence is completed (hourly chart).
Selling of the currency pair GBP / USD will be possible with the target of 1.3153 and a Stop Loss order above the level of 76.4% if the pair closes below the Fibo level of 1.3208 (hourly chart).
The material has been provided by InstaForex Company – www.instaforex.com