Analysis of GBP / USD Divergences for September 7. Two rebounds from the level of 1.2952 work in favor of the US currency
The GBP / USD currency pair on the 4-hour chart reversed in favor of the British currency after the bullish divergence of the CCI indicator. As a result, the pair began the growth process in the direction of the corrective level of 200.0% – 1.3047. There are no new brewing divergences on September 7. The fall of the pair’s rate from the Fibo level of 200.0% will allow traders to expect a reversal in favor of the US dollar and a slight drop towards the correction level of 261.8% – 1.2637. Fixing the quotes above the Fibo level of 200.0% will work in favor of continuing the growth of the pair.
The Fibo grid is built on extremes from March 1, 2018, and April 17, 2018.
On the hourly chart, the pair retreated from the correction level of 23.6% to 1.2952 and began to fall in the direction of the corrective level of 38.2% to 1.2897. There are no maturing divergences on the current chart. Quit of quotes from the level of Fibo 38.2% will work already in favor of the pound sterling and resumption of growth in the direction of correction level of 23.6%. Fixing the pair’s rate above the Fibo level of 23.6% will similarly work in favor of continuing growth in the direction of the correction level of 0.0% – 1.3043.
The Fibo grid is built on extremes from August 15, 2018, and August 30, 2018.
Recommendations for traders:
Purchases of the GBP / USD pair can be carried out for the purpose of 1.2952 and a stop loss order under the correction level of 38.2% if there is a retreat from the correction level 1,2897 (hourly chart).
Sales of the GBP / USD pair can now be carried out with the target of 1.2897 and Stop Loss order above the correction level of 23.6%, since the pair has completed the rebound from the level of 1.2952.