4h
The GBP/USD pair on the 4-hour chart resumed the growth process towards the corrective level of 161.8% - 1.3301. On July 4, the bearish divergence of the CCI indicator is maturing: the last peak of quotations is higher than the previous one, and a similar peak of the indicator may turn out lower than the previous one. Bearish divergence will allow traders to count on a reversal in favor of the US currency and a slight drop towards the correction level of 200.0% to 1.3048. The consolidation of the pair's rate below the Fibo level of 200.0% will work in favor of a further decline.
The Fibo grid is built on extremes from March 1, 2018 and April 17, 2018.
1h
On the hourly chart, the GBP/USD pair made a return to the correction level of 61.8% - 1.3212. The retreat of quotations from the level of Fibo 61.8% allows you to count on a reversal in favor of the US dollar and a slight drop in the direction of the correction level of 50.0% - 1.3182. Bearish divergence in the CCI indicator similarly worked in favor of the US currency. The consolidation of quotes below the Fibo level of 50.0% will increase the chances of the pair to continue falling towards the next corrective level of 38.2% - 1.3150.
The Fibo grid is built on the extremes of June 22, 2018 and June 28, 2018.
Recommendations for traders:
Buying of the GBP/USD pair can be opened with a target of 1.3252 and a Stop Loss order under the correction level of 1.3212, if there is a close above the Fibo level of 61.8% (hourly chart).
The GBP/USD pair can now be sold with a target of 1.3182 (and 1.3150) and a Stop Loss order above the correction level of 61.8%, since there has been a retreat from the level of 1.3212 (hourly chart) with the formation of a bearish divergence.
