Analysis of the GBP / USD Divergences for March 4. Is the hike pound sterling completed?

4h

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On the 4-hour chart, the GBP / USD pair reversed in favor of the US dollar near the Fibo level of 100.0% - 1.3300 and began the process of falling in the direction of the correction level 76.4% - 1.3094. Releasing the pair on March 4 from the Fibo level of 76.4% will allow us to count on a reversal in favor of the British currency and a return to the correction level of 100.0%. On the other hand, closing the pair above the Fibo level of 100.0% will similarly work in favor of resuming growth in the direction of the correction level 127.2% - 1.3530.

The Fib net is built on the extremums from September 20, 2018 and January 3, 2019.

1h

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On the hourly chart, the pair reversed in favor of the British pound and consolidated above the correction level of 100.0% - 1.3217. As a result, the growth process can be continued in the direction of the Fibo level 127.2% - 1.3337 today. None of the indicators have maturing divergences on the current chart. Fixing quotes under the level of 100.0% will work in favor of the American currency and the resumption of decline in the direction of the correctional level of 76.4% - 1.3111.

The Fib net is built on the extremes from January 25, 2019 and February 14, 2019.

Recommendations to traders:

Now, purchases of the GBP / USD pair can be carried out with a target of 1.3337 and a Stop Loss order below the level of 100.0%, as the pair completed closing above the level of 1.3217 (hourly chart).

Sales of the GBP / USD pair can be carried out with the target at 1.3111 and a Stop Loss order above the 100.0% level if the pair closes below the 1.3217 level (hourly chart).

The material has been provided by InstaForex Company - www.instaforex.com

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