Analysis of GBP / USD Divergences for March 7th. The pair is consolidating after two rebounds

4h

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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.

1h

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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

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