4h
The currency pair GBP / USD on the 4-hour chart completed closing above the correction level of 76.4% - 1.3094 after the formation of bullish divergence in the CCI indicator. As a result, on January 31, the growth process of quotations can be continued in the direction of the next Fibo level of 100.0% - 1.3300. Fixing quotes under the correction level of 76.4% can be interpreted as a reversal in favor of the US currency and expect a slight drop in the direction of the correctional 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 reversal in favor of the currency of England and began to grow in the direction of the correction level of 200.0% - 1.3187 after the formation of the bullish divergence of the CCI indicator. Rebounding the pair from the Fibo level of 200.0% will work in favor of the US dollar and a slight decline in the direction of the level of 161.8% - 1.3045. The closing of quotations above the Fibo level of 200.0% will work in favor of continuing growth in the direction of the correction level of 261.8% - 1.3418.
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 161.8%, as bullish divergence has formed (hourly chart).
Sales of the currency pair GBP / USD can be carried out with the target of 1.3045 and a Stop Loss order above the level of 200.0% if the pair bounces off the level of 1.3187 (hourly chart).
