Analysis of GBP / USD divergence for March 19. A bullish divergence and rebound interrupted dollar growth
As seen on the hourly chart, the pair made the fourth drop from the Fibo level of 38.2% (1.3220) and climbed to the level of 23.6% (1.3228). Rejecting the price from this level will enable traders to expect a reversal in favor of the US dollar and a slight decline in the direction of the retracement level of 38.2%. Divergence which was forming on March 19 failed to develop. Closing the pair above the Fibo level of 23.6% will increase the chances of further growth towards the next retracement level of 0.0% (1.3380).
The Fibo grid is built on the grounds of the extremums from March 11, 2019, and March 13, 2019.
Buy deals on GBP / USD pair can be opened with the target at 1.3380 and a stop-loss order below the level of 23.6% if the pair closes above 1.3281 (hourly chart).
Sell deals on GBP / USD pair can be opened with the target at 1.3220 and a stop-loss order above the level of 23.6% if the pair bounces off of the retracement level of 1.3228 (hourly chart).The material has been provided by InstaForex Company - www.instaforex.com