Konstantin Boykachev

CEO Proforexea LLC

Honest Coder

Professional Trader

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Konstantin Boykachev

CEO Proforexea LLC

Honest Coder

Professional Trader

Blog Post

Analysis of GBP / USD Divergences for July 19. Bullish divergence allowed us to begin recovery

July 19, 2018 Analytics

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4h

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The GBP / USD pair fell to a correction level of 200.0% at 1.3047 and a reversal in favor of the British pound on the 4-hour chart. As a result, the growth began in the direction of the correction level of 161.8% at 1.3301. Binding divergences on July 19 can not be seen in any indicator. The consolidation of quotes under the Fibo level of 200.0% will work in favor of the US dollar and the pair dropped to the correction level of 261.8% – 1.2638.

The Fibo grid was formed on extremes from March 1, 2018 and April 17, 2018.

1h

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On the hourly chart, the pair reversed in favor of the British currency and fixed above the correction level of 100.0% to 1.3049, after the bullish divergence of the CCI indicator. As a result, the growth process can be continued today in the direction of the next Fibo level of 76.4% at 1.3122. The pair’s retracement from the correction level of 76.4% will allow traders to count on a reversal in favor of the US dollar and a slight drop towards the correction level of 100.0%. Fixing the quotes below the Fibo level of 100.0% will increase the chances of the pair to continue falling towards the next correction level of 127.2% – 1.2963.

The Fibo grid was formed on extremes of June 22, 2018 and June 28, 2018.

Recommendations for traders:

Buy the GBP / USD pair with a target of 1.3122 and a stop loss order under the correction level of 100.0%, if there is a close above the Fibo level of 1.3049 (hourly chart).

Sell the GBP / USD pair with the target of 1.2963 and a Stop Loss order above the correction level of 100.0% if there is a close under the level of 1.3049.

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

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