The pair GBP / USD on the 4-hour chart performed a reversal in favor of the US currency and closing below the correction level of 76.4% - 1.3094. Thus, on March 13, the fall in quotations can be continued in the direction of the next Fibo level of 61.8% - 1.2969. There is no indicator of the emerging divergences today. Fixing the pair above the correction level of 76.4% can be interpreted as a reversal in favor of the British currency and we can expect some growth in the direction of the correctional level of 100.0% - 1.3300.
The Fibo grid is built on extremums from September 20, 2018, and January 3, 2019.
On the hourly chart, the pair made a fall to the correctional level of 50.0% - 1.3062. The end of quotes from this level allows us to expect a reversal in favor of the pound sterling and some growth in the direction of the correction level of 38.2% - 1.3130. The end of the quotations from the Fibo level of 38.2% will work in favor of the US dollar and the resumption of the fall in the direction of the correction level of 50.0%. Closing a pair under this level will increase the chances of continuing to fall in the direction of the next Fibo level of 61.8% - 1.2993.
The Fibo grid is built on extremes from February 14, 2019, and February 27, 2019.
Recommendations to traders:
Purchases of the GBP / USD pair can be carried out now with a target of 1.3130 and a Stop Loss order below the level of 50.0% since the pair has completed the rebound from the level of 1.3062 (hourly chart).
Sales of the GBP / USD pair can be carried out with the target of 1.3062 and a Stop Loss order above the level of 38.2% if the pair bounces off the level of 1.3130 (hourly chart).The material has been provided by InstaForex Company - www.instaforex.com