4h
On the 4-hour chart, the GBP / USD currency pair made a U-turn in favor of the US currency and remains within the lateral range indicated by the blue rectangle. Bullish divergence at the CCI indicator allows traders to expect a reversal in favor of the pound sterling and some growth to the upper range. The closing of quotations of the pair on December 27 under 1.2600 (lower range) will make it possible to count on the resumption of the fall in the direction of the correction level of 127.2% - 1.2491.
The Fibo grid was built on extremes from August 15, 2018, and September 20, 2018.
1h
On the hourly chart, the currency pair made some fall, but now the bullish divergence at the MACD indicator allows you to count on a turn in favor of the British currency and a return to the correction level of 100.0% - 1.2696. A pass of the last divergent low will work in favor of the American dollar and continuing to fall in quotations in the direction of the Fibo level of 127.2% - 1.2566. Fixing the pair above the correction level of 100.0% will increase the likelihood of continued growth in the direction of the Fibo level of 76.4% - 1.2809.
The Fib net is built on extremes from October 30, 2018, and November 7, 2018.
Recommendations to traders:
Purchases of the GBP / USD currency pair can be carried out now with a target of 1.2696 and a Stop Loss order under a bullish divergence low, as bullish divergence has formed (hourly chart).
Sales of the GBP / USD currency pair can be carried out with a target of 1.2566 and a Stop Loss order above the level of 100.0% if the pair bounces off the level of 1.2696 (hourly chart).
The material has been provided by InstaForex Company - www.instaforex.com