Analysis of the GBP / USD Divergences for February 25. The growth potential of the pound is limited until the level of 1.3094

4h

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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.

1h

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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

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