Analysis of the divergence of GBP / USD on February 27. The bearish divergence predicts the pound rolling back down

4h

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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.

1h

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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

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