4h
As seen on the 4-hour chart, the GBP/USD pair performed a rebound from the retracement level of 61.8% (1.2969) and a reversal in favor of the British pound. As a result, on May 10, the growth process can be continued in the direction of the retracement level of 76.4% (1.3094). Today, the emerging divergence is not observed on any indicator. Closing the pair below the Fibo level of 61.8% will increase the probability of a further fall in the direction of the retracement level of 50.0% (1.2867).
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 an increase to the retracement level of 50.0% (1.3031) after the formation of a bullish divergence, after which a bearish divergence was formed, which together with the rebound from the Fibo level of 50.0% worked in favor of the US dollar. As a result, the process of falling in the direction of the retracement level of 38.2% (1.2992) began. Closing the pair below the Fibo level of 38.2% will allow traders to expect a continuation of a fall towards the retracement level of 23.6% (1.2943), and the retreat – to return to the level of Fibo 50.0%.
The Fibo grid is built according to the extremes of April 3, 2019, and April 25, 2019.
Forecast and trading recommendations for GBP/USD:
Buy deals on GBP/USD pair can be opened with the target at 1.3031 and a stop loss order under the retracement level of 38.2% if the pair bounces off the level of 1.2992 (hourly chart).
Sell deals on GBP/USD pair can be opened with the target at 1.2943 and a stop loss order above the level of 38.2% if the pair completes below the retracement level of 1.2992 (hourly chart).
