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Analysis of GBP/USD divergences for May 14. The pound is clearly falling from level to level

4h

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As seen on the 4-hour chart, the GBP/USD pair performed a reversal in favor of the US dollar and consolidation under the retracement level of 61.8% (1.2969). Thus, the fall of quotations can be continued in the direction of the next retracement level of 50.0% (1.2867). There are no emerging divergences on the current chart today. The consolidation of quotations above the Fibo level of 61.8% will work in favor of the pound and the resumption of growth in the direction of the retracement level of 76.4% (1.3094).

The Fibo grid is built according to the extremes of September 20, 2018, and January 3, 2019.

1h

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As seen on the hourly chart, the GBP/USD pair rebounded from the Fibo level of 50.0% (1.3031), the third in a row, a reversal in favor of the US dollar and a fall to the retracement level of 23.6% (1.2943). Two rebounds from this level allowed the pair to perform a reversal in favor of the British pound and begin the process of returning to the Fibo level of 38.2% (1.2992). The consolidation of quotations under the level of 23.6% will increase the chances of the pair to further fall in the direction of the next retracement level of 0.0% (1.2865).

The Fibo grid is built according to the extremes of Apri,l 3, 2019 and April 25, 2019.

Forecast for GBP/USD and trading recommendations:

Buy deals on GBP/USD pair can be opened with the target at 1.2992 and a stop loss order under the retracement level of 23.6% since the pair has rebounded from the level of 1.2943 (hourly chart).

Sell deals on GBP/USD pair can be opened with the target at 1.2865 and a stop loss order above the level of 23.6% if the pair completes the retracement level of 1.2943 (hourly chart).

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