Analysis of GBP / USD Divergences for July 23. Pound sterling may resume falling already today
The GBP / USD pair on the 4-hour chart reversed in favor of the British currency after the bullish divergence of the CCI indicator and the fixation above the correction level of 200.0% to 1.3047. As a result, the growth process continues on July 23 in the direction of the corrective level of 161.8% – 1.3301. The bearish divergence of the CCI indicator is maturing, which allows us to count on a reversal in favor of the US currency and a return to the Fibo level of 200.0% – 1.3047. The consolidation of quotations under the correction level of 200.0% will increase the chances of continuing the fall towards the Fibo level of 261.8% – 1.2638.
The Fibo grid is built on extremes from March 1, 2018 and April 17, 2018.
On the hourly chart, the growth process continues towards the corrective level of 50.0% – 1.3160. Quit of the pair quotes from the Fibo level of 50.0% will allow traders to expect a reversal in favor of the US dollar and a slight drop towards the correction levels of 38.2% – 1.3111 and 23.6% – 1.3052. Fixing the rate above the Fibo level of 50.0% will increase the probability of further growth in the direction of the next correction level of 61.8% – 1.3208.
The Fibo grid is built on extremes from July 9, 2018 and July 19, 2018.
Recommendations for traders:
Purchases of the GBP / USD pair can now be kept open with a target of 1.3160 and a stop loss order under the correction level of 38.2%, as there was a close above the Fibo level of 1.3111 (hourly chart). Closing above the level of 50.0% will allow you to hold purchases with a target of 1.3208.
The GBP / USD pair can be traded with a target of 1.3111 and a Stop Loss order above the correction level of 50.0% if there is a retreat from the Fibo level of 1.3160.