4h
The GBP / USD pair on the 4-hour chart completed the passage of the last peak of the bearish divergence and consolidation above the Fibo level of 61.8% - 1.2969. Thus, the growth process continues on February 20 in the direction of the correction level of 76.4% - 1.3094. Resetting the pair from this level will allow traders to expect a reversal in favor of the American currency and a slight fall towards the correctional level of 61.8%. Closing the pair above the level of 76.4% will increase the chances of continued growth in the direction of the next correction level of 100.0% - 1.3300.
The Fibo grid is built on extremes from September 20, 2018, and January 3, 2019.
1h
On the hourly chart, the pair continues the growth process in the direction of the correction level of 23.6% - 1.3088. The release of the pair's course from this Fibo level will make it possible to count on a reversal in favor of the US currency and a return to the correction level of 38.2% - 1.3008. The ripening divergence on February 20 is not observed. Closing quotes above the Fibo level of 23.6% will increase the probability of continued growth in the direction of the correction level of 0.0% - 1.3217.
The Fibo grid was built on extremes from January 15, 2019, and January 25, 2019.
Recommendations to traders:
New purchases of the GBP / USD pair can be made with a target of 1.3217 and a Stop Loss order below the level of 23.6% if the pair closes above 1.3088 (hourly chart).
Sales of the GBP / USD pair can be carried out with the target of 1.308 and a Stop Loss order above the level of 23.6% if the pair bounces off the level of 1.3088 (hourly chart).
The material has been provided by InstaForex Company - www.instaforex.com