4h
The GBP / USD currency pair on the 4-hour chart performed a rebound from the correction level of 127.2% - 1.2491 and an increase to the Fibo level of 100.0% - 1.2662. Quoting quotes from this level will allow traders to expect a reversal in favor of the US dollar and a resumption of decline in the direction of the correction level of 127.2%. There are no emerging divergences today. Fixing quotes above Fibo level of 100.0% will increase the chances of continued growth in the direction of the next correction level of 76.4% - 1.2812.
The Fibo grid was built on extremes from August 15, 2018, and September 20, 2018.
1h
On the hourly chart, after the formation of the bullish divergence at the MACD indicator, the quotes of the pair reversed in favor of the pound sterling and started to grow with closing above the correction level of 127.2% - 1.2566. However, the further growth of the pair holds the Fibo level of 100.0% on the 4-hour chart. Closing above this particular level will allow us to count on continued growth in the direction of the correction level of 100.0% - 1.2696 on the hourly chart.
The Fibo grid is built on extremes from October 30, 2018, and November 7, 2018.
Recommendations to traders:
Purchases of the GBP / USD currency pair can be made with the target of 1.2812 and a Stop Loss order below the level of 100.0% (4-hour chart) if the pair closes above the correction level of 100.0% (4-hour chart).
Sales of the GBP / USD currency pair can be carried out with a target of 1.2491 and a Stop Loss order above the level of 100.0% if the pair rebounds from the level of 100.0% (4-hour chart).
The material has been provided by InstaForex Company - www.instaforex.com