Analysis of the divergence of GBP / USD on February 26. A bearish divergence inclines the pound to fall again

4h

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The GBP / USD pair on the 4-hour chart made a rebound from the Fibo level of 61.8% - 1.2969, started the growth of quotations and executed a close above the correction level of 76.4% - 1.3094. As a result, on February 26, the pair continues to grow in the direction of the next correction level of 100.0% - 1.3300. A bearish divergence is at the MACD indicator: the last peak of quotes has already exceeded the previous one, which does not correspond to the indicator peaks. The formation of a bearish divergence will allow us to expect a reversal in favor of the US dollar and a slight decline in the pair. Closing quotes below the Fibo level of 76.4% will similarly work in favor of the US currency.

The Fibo grid is built on extremums from September 20, 2018, and January 3, 2019.

1h

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On the hourly chart, the pair consolidated above the correction level of 76.4% - 1.3111. Thus, today the growth can be continued in the direction of the Fibo level of 100.0% - 1.3217. None of the indicators have maturing divergences on the current chart. A close of the pair below the Fibo level of 76.4% will work in favor of the American currency and a slight fall in the direction of the correction level of 61.8% - 1.3047.

The Fibo grid is built on extremes from January 25, 2019, and February 14, 2019.

Recommendations to traders:

Purchases of the GBP / USD pair can be made now with a target of 1.3217 and a Stop Loss order below the level of 76.4%, as the pair completed the closure above the level of 1.3111 (hourly chart) and hold them until a bearish divergence is formed on the 4-hour chart.

Sales of the GBP / USD pair can be made with the target of 1.3047 and a Stop Loss order above the level of 76.4% if the pair closes below the level of 1.3111 (hourly chart).

The material has been provided by InstaForex Company - www.instaforex.com

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