4h
As seen on the 4-hour chart, the GBP/USD pair continues the process of falling in the direction of the retracement level of 50.0% (1.2868). On April 25, a bullish divergence is brewing in the CCI indicator, which allows us to count on the pair's reversal in favor of the British pound and on some growth in the direction of the retracement level of 61.8% (1.2969). The rebound of quotations from the Fibo level of 50.0% will work similarly in favor of the beginning of the pair's growth. Closing the rate below the level of 50.0% will increase the probability of a further fall in the direction of the next retracement level of 38.2% (1.2765).
The Fibo grid is built according to the extremes of September 20, 2018, and January 3, 2019.
1h
As seen on the hourly chart, the GBP/USD pair has already completed a reversal in favor of the pound and a return to the retracement level of 127.2% (1.2917) after the bullish divergence of the CCI indicator was formed. The rebound of the pair from the level of 127.2% will work in favor of the US dollar and the resumption of the fall in the direction of the Fibo level of 161.8% (1.2842). Closing the pair's quotes above the level of 127.2% will increase the chances of continued growth in the direction of the retracement level of 100.0% (1.2976).
The Fibo grid is built according to the extremes of March 29, 2019, and April 3, 2019.
Forecast for GBP/USD and trading recommendations:
Buy deals on GBP/USD pair can be opened with the target at 1.2976 and a stop loss order under the retracement level of 127.2% if the pair closes above 1.2917 (hourly chart).
Sell deals on GBP/USD pair can be opened with the target at 1.2842 and a stop loss order above the level of 127.2% if the pair bounces off of the level of 1.2917 (hourly chart) and passes the low divergence.
The material has been provided by InstaForex Company - www.instaforex.com