4h
The currency pair GBP / USD on the 4-hour chart completed closing under the correction level of 61.8% - 1.2969. As a result, on February 7, the process of falling continues in the direction of the next correction level of 50.0% - 1.2869. Over the current chart, there are no divergences observed in any indicator. Rebounding the pair's quotes from the Fibo level of 50.0% will make it possible to count on a turn in favor of the British currency and some growth in the direction of the correction level of 61.8%.
The Fibo grid is built on extremums from September 20, 2018, and January 3, 2019.
1h
On the hourly chart, a second bullish divergence has formed, now with both indicators, MACD and CCI. However, even after its steam formation, the expected growth process did not begin. The passage of the last lows of these divergences by quotations will work in favor of resuming the fall in the direction of the correctional level of 61.8% - 1.2880. Fixing the pair above the level of 50.0% will make it possible to expect some growth, but the pair's desire to grow now is absent.
The Fibo grid was built on extremes from January 15, 2019, and January 25, 2019.
Recommendations to traders:
Purchases of the currency pair GBP / USD can be made with the target at 1.3008 and a Stop Loss order below the level of 50.0% if the pair closes above the level of 1.2943 (hourly chart), especially in conjunction with unchanged bullish divergence.
New sales of the currency pair GBP / USD can be made with the target of 1.2880 and a Stop Loss order above the level of 50.0%, if the pair passes the low bullish divergence (hourly chart).
The material has been provided by InstaForex Company - www.instaforex.com