4h
The GBP / USD currency pair on the 4-hour chart, after the formation of the bullish divergence at the MACD indicator, performed a reversal in favor of the British currency and consolidation above the correction level of 50.0% - 1.2869. Thus, the started growth process can be continued in the direction of the Fibo level of 61.8% - 1.2969. Fixing quotes under the level of 50.0% will work in favor of the American currency and the resumption of decline in the direction of the correctional level of 38.2% - 1.2765.
The Fibo grid is built on extremes from September 20, 2018, and January 3, 2019.
1h
On the hourly chart, the currency pair similarly performed a reversal in favor of the British pound and closing above the correction level of 61.8% - 1.2878, after the formation of the bullish divergence in the MACD indicator. It is expected to increase in the direction of the fibo level of 50.0% - 1.2943. New emerging divergences today are not observed. Quoting quotes from the level of 50.0% will allow traders to count on a U-turn in favor of the US currency and a return to the Fibo level of 61.8%.
The Fibo grid was built on extremes from January 15, 2019, and January 25, 2019.
Recommendations to traders:
Purchases of the GBP / USD currency pair can be carried out now with a target of 1.2943 and a Stop Loss order below the level of 61.8% since the pair completed the close above 1.2878 (hourly chart).
Sales of the GBP / USD currency pair can be carried out with the target of 1.2878 and a Stop Loss order above the level of 50.0% if the pair bounces off of the level of 1.2943 (hourly chart).
