4h
As seen on the 4-hour chart, the GBP/USD pair performed a rebound from the retracement level of 76.4% (1.3094) and a reversal in favor of the pound. Thus, on May 7, the process of growth of the pair resumed in the direction of the retracement level of 100.0% (1.3296). Currently, there are no emerging divergences in any indicator on both charts. The consolidation of the pair under the Fibo level of 76.4% can be interpreted as a reversal in favor of the US currency and expect a resumption of the fall in the direction of the retracement level of 61.8% (1.2969).
The Fibo grid is built according to the extremes of September 20, 2018, and January 3, 2019.
1h
As seen on the hourly chart, the GBP/USD pair performed a reversal in favor of the currency of England and a return to the retracement level of 76.4% (1.3117). The consolidation of quotations above the level of Fibo 76.4% will work in favor of continuing growth in the direction of the next retracement level of 100.0% (1.3195). The rebound of quotations from the Fibo level of 76.4% will allow to expect a turn in favor of the US dollar and the resumption of the fall in the direction of the retracement level of 61.8% (1.3069).
The Fibo grid is built according to the extremes of April 3, 2019, and April 25, 2019.
Forecast for GBP/USD and trading recommendations:
Buy deals on GBP/USD pair can be opened with the target at 1.3195 and a stop loss order under the retracement level of 76.4% if the pair closes above 1.3117 (hourly chart).
Sell deals on GBP/USD pair can be opened with the target at 1.3069 and a stop loss order above the level of 76.4% if the pair bounces off of the level of 1. 1.317 (hourly chart).
