4h
On the 4-hour chart, the GBP / USD quotes continue to fall after the formation of a bearish divergence in the CCI indicator. Today, a new divergence is emerging at the MACD indicator, which allows you to count on the pair reversal in favor of the British currency and some growth in the direction of the correction level of 76.4% - 1.2813. The end of the course from the Fibo level of 100.0% - 1.2662 will similarly allow you to expect some growth. But fixing the quotes below the Fibo level of 100.0% will make it possible to expect a further fall in the direction of the next correction level of 127.2% - 1.2487.
The Fibo grid was built according to extremums of August 15, 2018, and September 20, 2018.
1h
On the hourly chart, the pair fixed under the correctional level of 161.8% - 1.2718. As a result, the fall in quotations can be continued on October 31 in the direction of the next Fibo level of 200.0% - 1.2590. None of the indicators have maturing divergences on the current chart. Fixing the course of the pair above the correction level of 161.8% can be interpreted as a reversal in favor of the pound sterling and one can expect some growth in the direction of the correctional level of 127.2% - 1.2833.
The Fibo grid was built on extremes from October 4, 2018, and October 12, 2018.
Recommendations to traders:
Purchases of the GBP / USD currency pair can be made with the target of 1.2833 and a Stop Loss order under the correction level of 161.8% if the pair closes above 1.2718 (hourly chart).
You can sell the GBP / USD currency pair now with a target of 1.2590 and a Stop Loss order above the level of 161.8%, as the pair completed the closing below the correction level of 1.2718 (hourly chart).
The material has been provided by InstaForex Company - www.instaforex.com