Analysis of GBP / USD pair. Divergences as of August 7. British pound may take a little rest
On the 4-hour chart, quotations of the GBP / USD pair continue its decline in the direction of the Fibo level of 261.8% at 1.2638. Bullish divergence in the CCI indicator allows the pair to turn in favor of the British pound and begin the growth process in the direction of the correction level of 200.0% at 1.3047. The consolidation of quotations under the last low of divergence will work in favor of continuing the fall of the pair’s quotations.
The Fibo grid was established on boundaries from March 1, 2018 and April 17, 2018.
On the hourly chart, the pair underwent fixation under the correction level of 100.0% at 1.2958. s a result, the process of falling prices can be continued in the direction of the next correction level of 127.2% at 1.2888. Brewing divergences are not observed in any indicator today. Fixing the quotes of the pair above the Fibo level of 100.0% can be interpreted as a reversal in favor of the British pound and expect a certain increase in the direction of the correctional level of 76.4% at 1.3018.
The Fibo grid was established on boundaries from July 19, 2018 and July 26, 2018.
Recommendations for traders:
Purchases of the GBP / USD pair can be carried out for the purpose of 1.3018 level and a stop loss order under the correction level of 100.0% if it closes above the Fibo level of 1.2958 on the hourly chart.
The GBP / USD pair can now be traded with a target of 1.2888 and a Stop Loss order above the correction level of 100.0%, as there was a close under the Fibo level of 1.2958. The material has been provided by InstaForex Company – www.instaforex.com