4h
On a 4-hour chart, the GBP / USD currency pair fell to the correctional level of 38.2% - 1.2765, before reaching it quite a bit. A new bullish divergence was formed in the CCI indicator, which allows traders to expect a reversal in favor of the British currency and some growth in the direction of the correction level of 50.0% - 1.2869. Breaking quotes from the Fibo level of 38.2% will increase the likelihood of the pair starting to grow. Closing quotes below the correction level of 38.2% will work in favor of a further fall in the direction of the next Fibo level of 23.6% - 1.2639.
The Fibo grid is built on extremes from September 20, 2018, and January 3, 2019.
1h
On the hourly chart, the currency pair continues the process of falling and completed closing under the correction level of 76.4% - 1.2799. As a result, on February 15, the process of falling can be continued in the direction of the next Fibo level of 100.0% - 1.2671. In the current chart of emerging divergences, none of the indicators have one. Fixing quotations above the level of 76.4% can be interpreted as a reversal in favor of the currency of England and expect some growth in the direction of the correction level of 61.8% - 1.2878.
The Fibo grid was built on extremes from January 15, 2019, and January 25, 2019.
Recommendations to traders:
Purchases of the GBP / USD pair can be made with the target of 1.2878 and a Stop Loss order below the level of 76.4% if the pair closes above 1.2799 (hourly chart).
Sales of the GBP / USD pair can be made with the target of 1.2671 and a Stop Loss order above the level of 76.4% if the pair closes below the level of 1.2765 (4-hour chart).
The material has been provided by InstaForex Company - www.instaforex.com