Analysis of GBP / USD Divergences for July 20. Correction signals received
The pair GBP / USD on the 4-hour chart complied with the correction level of 200.0% – 1.3047. Bullish divergence in the CCI indicator allows the pair to perform some growth. Fixing the quotes of the pair above the Fibo level of 200.0% will allow to expect the continuation of growth in the direction of the correction level of 161.8% – 1.3301. The pair’s exit from the Fibo level of 200.0% will work in favor of the US currency and the resumption of a fall towards the corrective level of 261.8% – 1.2638. On July 20, there are no new brewing divergences.
The Fibo grid is built on extremes from March 1, 2018 and April 17, 2018.
On the hourly chart, the pair executed a reversal in favor of the British currency after the formation of bullish divergence in the MACD indicator and the rebound from the corrective level of 127.2% to 1.2963. As a result, the pair growth process can be continued in the direction of the correction level of 100.0% – 1.3049. Quit of quotations from the Fibo level of 100.0% will allow traders to count on a reversal in favor of the US currency and a return to the correction level of 127.2% – 1.2963. Fixing the quotes above the Fibo level of 100.0% will increase the chances for further growth in the direction of the next correction level of 76.4% – 1.3122.
The Fibo grid is built on the extremes of June 22, 2018, and June 28, 2018.
Recommendations for traders:
Purchases of the GBP / USD pair can now be kept open with a target of 1.3049 and a Stop Loss order under the correction level of 127.2%, since there has been a retreat from the Fibo level of 1.2963 (hourly chart). Closing above the correction level of 100.0% will help to keep purchases with the target of 1.3122.
Sell GBP / USD pair will be possible with the target of 1.2963 and a Stop Loss order above the correction level of 100.0% if there is a retreat from the Fibo level 1.3049.