4h
As seen on the 4-hour chart, the GBP/USD pair performed an increase to the retracement level of 76.4% (1.3094), a rebound from it and a reversal in favor of the US currency. As a result, on May 2, the process of falling in the direction of the Fibo level of 61.8% (1.2969) began. None of the indicators have emerging divergences on the current chart. The consolidation of quotations above the retracement level of 76.4% can be interpreted as a resumption of growth of the pair in the direction of the retracement level of 100.0% (1.3296).
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 closed below the Fibo level of 61.8% (1.3069) and fall towards the retracement level of 50.0% (1.3031) after the formation of the bearish divergence of the MACD indicator. However, the bullish divergence at the CCI indicator has already worked in favor of the British currency. Thus, the pair quotes began to return to the Fibo level of 61.8%. Closing above this level will increase the chances for further growth in the direction of the retracement level of 76.4% (1.3117). Fixation below the level of 50.0% will work in favor of continuing the fall in the direction of the retracement level of 38.2% (1.2992).
The Fibo grid is built according to the extremes of April 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 1.3069 and a stop loss order under the retracement level of 50.0% as bullish divergence was formed (hourly chart).
Sell deals on GBP/USD pair can be opened with the target at 1.2992 and a stop loss order above the level of 50.0% if the pair closes below the level of 1.3031 (hourly chart).
The material has been provided by InstaForex Company - www.instaforex.com