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Analysis of GBP / USD Divergences for January 17th. Pound sterling stalled

4h

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The currency pair GBP / USD on the 4-hour chart completed a return to the correction level of 50.0% - 1.2869. Resetting the pair from this level will allow traders to expect a reversal in favor of the American currency and a new drop in the direction of the correctional level of 38.2% - 1.2765. Overcoming divergences are not visible today. Closing the pair above the Fibo level of 50.0% will work in favor of continuing growth in the direction of the next correction level of 61.8% - 1.2970.

The Fibo grid is built on extremes from September 20, 2018, and January 3, 2019.

1h

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On the hourly chart, the currency pair continues to trade between the correction levels of 100.0% - 1.2815 and 127.2% - 1.2916. Absolutely lateral movement. The end of the first or second border of this kind of side corridor will allow you to expect a movement to the opposite border. The planned divergence is not observed. Closing above the correction level of 127.2% will allow traders to expect the pair to continue to grow in the direction of the level of 161.8% - 1.3048.

The Fibo grid is built on extremes from December 31, 2018, and January 3, 2019.

Recommendations to traders:

New purchases of the GBP / USD currency pair can be made with the target of 1.3048 and a Stop Loss order below the level of 127.2% if the pair closes above the level of 1.2916 (hourly chart).

Sales of the GBP / USD currency pair can be carried out with a target of 1.2815 and a Stop Loss order above the level of 127.2% if the pair bounces off of the level of 1.2916 (hourly chart).

The material has been provided by InstaForex Company - www.instaforex.com