The GBP / USD pair on the 4-hour chart rebounded from the correction level of 76.4% - 1.3094 and a turn in favor of the British currency. As a result, the process of growth began in the direction of the correctional level of 100.0% - 1.3300. There is not a single indicator showing ripening divergences on March 7. Fixing quotations of the pair below the Fibo level of 76.4% can be interpreted as a reversal in favor of the American currency and the resumption of the fall in the direction of the correction level of 61.8% - 1.2969 is expected.
The Fibo grid is built on extremes from September 20, 2018, and January 3, 2019.
On the hourly chart, the pair also rebounded from the correction level of 76.4% - 1.3111 and also began the process of growth in the direction of the Fibo level of 100.0% - 1.3217. Rebounding the pair from the level of 100.0% will allow traders to expect a reversal in favor of the US dollar and the resumption of decline in the direction of the correction level of 76.4% - 1.3111. Closing quotes above the Fibo level of 100.0% will increase the chances of the pair to continue to grow in the direction of the next correction level of 127.2% - 1.3337.
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 below the 100.0% level if the pair closes above 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 level of 100.0% if the pair bounces off the level of 1.3217 (hourly chart).The material has been provided by InstaForex Company - www.instaforex.com