4h
The GBP / USD currency pair reversed in favor of the US dollar and began the process of returning to the level of correction of 23.6% - 1.3067 on the 4-hour chart. The bullish divergence of the CCI indicator is brewing on October 15. The last low of the quotes may turn out to be higher than the previous one, which does not coincide with the low of the indicator. The bullish divergence will allow to expect a reversal in favor of the British currency and the resumption of growth in the direction of the correctional level of 38.2% - 1.3316. Breaking quotes from the Fibo level of 23.6% will similarly work in favor of the beginning of the pair's growth.
The Fibo grid was built according to extremums of April 17, 2018, and August 15, 2018.
1h
On the hourly chart, the pair completed under the correction level of 50.0% - 1.3110. Thus, the drop in quotations can be continued in the direction of the next correction level of 38.2% - 1.3065. However, the resulting bullish divergence in the CCI indicator allows us to count on a reversal in favor of the pound sterling and some growth in the direction of the correctional level of 61.8% - 1.3153. Closing quotes above the Fibo level of 50.0% will increase the chances of the pair at the beginning of growth.
The Fibo grid was built according to extremums of September 20, 2018, and October 4, 2018.
Recommendations to traders:
Purchases of the GBP / USD currency pair can be made with targets at 1.3153 and 1.3208 and a Stop Loss order under the correction level of 50.0% if the pair closes above 1.3110 (hourly chart).
It will be possible to sell the currency pair GBP / USD with targets of 1.3065 and 1.3010 and a Stop Loss order above the 50.0% level if the pair rebounds the Fibo level of 1.3110 (hourly chart).
The material has been provided by InstaForex Company - www.instaforex.com