Analysis of the GBP / USD Divergences for March 6. Two rebounds restrain a new fall of the pound sterling
The GBP / USD pair on the 4-hour chart performed a fall to the Fibo level of 76.4% - 1.3094 and rebound from it with a reversal in favor of the British currency. As a result, on March 6, the growth of quotations can be continued in the direction of a correction level of 100.0% - 1.3300. Closing quotes below the Fibo level of 76.4% will increase the chances of the pair to continue falling towards the next correction level of 61.8% - 1.2969. There are no emerging divergences today.
The Fibo grid is built on extremes from September 20, 2018, and January 3, 2019.
On the hourly chart, the pair rebounded from the correction level of 76.4% - 1.3111 and some growth. However, without any signal a little later, it turned in favor of the American dollar and began to return to the Fibo level of 76.4%. A new rebound from this level of correction will again allow us to count on a reversal in favor of the pound and some growth in the direction of the correction level of 100.0% - 1.3217. Fixing the pair below the Fibo level of 76.4% will work in favor of continuing the fall in the direction of the next correction level of 61.8% - 1.3047.
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 a target of 1.3217 and a Stop Loss order below the level of 76.4% if the pair performs a new rebound from the level of 1.3111 (hourly chart).
Sales of the GBP / USD pair can be made with the target of 1.3047 and a Stop Loss order above the level of 76.4% if the pair closes below the level of 1.3111 (hourly chart).The material has been provided by InstaForex Company - www.instaforex.com