Analysis of the divergence of GBP / USD on February 27. The bearish divergence predicts the pound rolling back down
The pair GBP / USD on the 4-hour chart completed growth to the correction level of 100.0% - 1.3300. Today, a bearish divergence has formed at the CCI indicator. This divergence allows traders to expect a reversal in favor of the US currency and a slight decline towards the Fibo level of 76.4% - 1.3094. Fixing the pair above the level of 100.0% will work in favor of continuing growth of quotations in the direction of the next correction level of 127.2% - 1.3530 and will cancel the divergence.
The Fibo grid is built on extremums from September 20, 2018, and January 3, 2019.
On the hourly chart, the pair completed above the correction level of 100.0% - 1.3217. Thus, today, growth can be continued in the direction of the next Fibo level of 127.2% - 1.3337. However, in favor of the US dollar, divergence on the 4-hour chart may work. The close of the pair under the correction level of 100.0% confirms the turn in favor of the American currency and allows counting on a slight drop in the direction of the correctional level of 76.4% - 1.3111.
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 with the target at 1.3530 and a Stop Loss order below the 100.0% level if the pair closes above the 1.300 level (4-hour chart).
Sales of the GBP / USD pair can be carried out with the target at 1.3111 and a Stop Loss order above the 100.0% level if the pair closes below the 1.3217 level (hourly chart).The material has been provided by InstaForex Company - www.instaforex.com