Analysis of GBP / USD pair – Divergences on August 23. The pound sterling has completed a corrective rollback Analysis of
The GBP / USD pair reversed in favor of the US dollar without the formation of a bearish divergence or rebound on the 4-hour chart. As a result, the drop in quotations could be continued on August 23 in the direction of the correction level of 261.8% at 1.2638. Brewing divergences are also not notice today. or a more accurate picture of what is happening, go to the lower time frame chart.
The Fibo grid was established on boundaries from March 1, 2018 and April 17, 2018.
On the hourly chart, the pair executed a reversal in favor of the US currency after the formation of a bearish divergence in the MACD indicator and fixation under the correction level of 38.2% at 1.2872. As a result, the drop in quotations can be continued in the direction of the next correction level of 23.6% at 1.2791. Fixing the rate of the pair above the Fibo level of 38.2% will work in favor of the British currency and the resumption of growth towards the correction level of 50.0% at 1.2937.
The Fibo grid was established on boundaries from July 26, 2018 and August 15, 2018.
Recommendations for traders:
Purchases of the GBP / USD pair will be possible with the target of 1.2937 and a stop loss order under the correction level of 38.2% if it closes above the Fibo level of 1.2872 on the hourly chart.
Sales of the GBP / USD pair can now be carried out with the target of 1.2791 and a Stop Loss order above the correction level of 38.2%, as there was a close under the Fibo level of 1.2882.