Analysis of the GBP / USD Divergences for February 25. The growth potential of the pound is limited until the level of 1.3094
As shown on the 4-hour chart, the GBP / USD pair completed the rebound from the correction level of 61.8% - 1.2969 A reversal in favor of the British currency and began to grow in the direction of the Fibo level 76.4% - 1.3094. A bullish divergence was also formed in the CCI indicator, which coincided with the rebound. Quotes on February 25 from the Fibo level of 76.4% will work in favor of the US dollar and thus, will resume the fall towards the level of 61.8%. Closing the pair above the Fibo level of 76.4% will increase the likelihood of continued growth in the direction of the next level of correction 100.0% - 1.3300.
The Fib net is built on extremums from September 20, 2018 and January 3, 2019.
As illustrated on the hourly chart, the pair reversed in favor of the British currency and closed above the correctional level of 61.8% - 1.3047. As a result, the growth process can be continued today in the direction of the next Fib level 76.4% - 1.3111. There is no maturing divergence in any indicator. The close of the pair under the correction level of 61.8% will work in favor of the US currency and some fall in the direction of the Fibo level 50.0% - 1.2994.
The Fib net 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 the target of 1.3094 and a Stop Loss order below the level of 61.8%, since the pair completed the closure above the level of 1.3047 (hourly chart).
Sales of the GBP / USD pair can be made with the target of 1.2994 and a Stop Loss order above the level of 61.8% if the pair closes below the level of 1.3047 (hourly chart).The material has been provided by InstaForex Company - www.instaforex.com