4h
Quotes of the currency pair GBP / USD made a return to the correction level of 23.6% - 1.3067. On September 28, the bullish divergence of the indicator CCI is brewing. The formation of a divergence will allow one to expect some growth of the pair in the direction of the correctional level of 38.2% - 1.3316 and may coincide with a rebound from the Fibo level of 23.6%. Fixing the pair below the correction level of 23.6% will increase the likelihood of the fall continuing in the direction of the next fib 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 continues the process of falling and performed consolidation below the Fibo level of 38.2% - 1.3101. As a result, the fall in quotations can be continued on September 28 in the direction of the next correction level of 50.0% - 1.3041. Brewing divergences on the current chart are not observed. Rebounding the pair's quotes from the Fibo level of 50.0% will allow traders to count on a turn in favor of the British currency and some growth in the direction of the correctional level of 38.2%.
The Fib net is built on extremums from September 5, 2018, and September 20, 2018.
Recommendations for traders:
Purchases of the GBP / USD currency pair can be carried out with the target of 1.3101 and a Stop Loss order under the correction level of 50.0% if the rebound from the Fibo level 1.3041 (hourly chart) occurs or with the target of 1.3176 if there is a closing above the Fibo 38.2%, or when rebounding at 4-hour chart from Fibo level 23.6%, especially with the formation of bullish divergence.
The currency pair GBP / USD can be sold now with a target of 1.3041 and a Stop Loss order above the level of 38.2%, as the pair completed the closure below the Fibo level of 1.3101 (hourly chart).
The material has been provided by InstaForex Company - www.instaforex.com