The GBP / USD pair on the 4-hour chart completed growth to the correction level of 100.0% - 1.3300 and a turn around it in favor of the American dollar. As a result, on March 1, the fall process can be continued in the direction of the Fibo level of 76.4% - 1.3090. There is no indicator of the emerging divergences today. Fixing a pair of quotes above the correction level of 100.0% can be interpreted as a reversal in favor of the British currency and we expect a resumption of growth in the direction of the correctional level of 127.2% - 1.3530.
The Fibo grid is built on extremes from September 20, 2018, and January 3, 2019.
On the hourly chart, after the pair rebounds from the Fibo level of 127.2% - 1.337 and the formation of a bearish divergence at the MACD indicator. The process of falling continues in the direction of the correction level of 100.0% - 1.3217. Rebounding the pair from this level will allow us to expect a reversal in favor of the British currency and the resumption of growth in the direction of the correction level of 127.2%. Closing the pair below the 100.0% level will work in favor of continuing the fall towards the next Fibo 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 of 1.3337 and a Stop Loss order under the level of 100.0% if the pair bounces off the level of 1.3217 (hourly chart).
Sales of the GBP / USD pair can be carried out now with the target of 1.3217 and a Stop Loss order above the level of 127.2% since the pair has completed the rebound from the level of 1.3337 (hourly chart).The material has been provided by InstaForex Company - www.instaforex.com