4h
The currency pair GBP / USD on the 4-hour chart completed closing below the correction level of 76.4% - 1.3094. The formation of bullish divergence on January 30th allows traders to rely on a turnaround in favor of the British currency and the resumption of growth in quotations. Closing the pair above the Fibo level of 76.4% will increase the chances of the pair to resume growth in the direction of the correction level of 100.0% - 1.3300. The breakthrough of the last low divergence will work in favor of continuing to fall in the direction of the Fibo level of 61.8% - 1.2969.
The Fibo grid is built on extremums from September 20, 2018, and January 3, 2019.
1h
On the hourly chart, the currency pair performed a drop to the Fibo level of 161.8% - 1.3045. The end of the pair quotes from this level will allow us to expect a reversal in favor of the pound sterling and the resumption of growth in the direction of the correction level of 200.0% - 1.3187. There are no ripening divergences today. Closing quotes below the Fibo level of 161.8% will work in favor of continuing to fall in the direction of the next correction level of 127.2% - 1.2916.
The Fibo grid is built on extremes from December 31, 2018, and January 3, 2019.
Recommendations to traders:
Purchases of the currency pair GBP / USD can be made with the target of 1.3187 and a Stop Loss order below the level of 76.4% if the pair closes above the level of 1.3094 (4-hour chart).
Sales of the currency pair GBP / USD can be made with a target of 1.2916 and a Stop Loss order above the level of 161.8% if the pair closes below the level of 1.3045 (hourly chart).
