Analysis of GBP/USD divergence for April 11. Bullish divergence supported pound sterling

4h

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As seen on the 4-hour chart, the GBP/USD pair performed a return to the retracement level of 76.4% (1.3094). The new release of the pair from this level will again allow traders to expect a reversal in favor of the American currency and the resumption of a fall in the direction of the Fibo level of 61.8% (1.2969). Today, there are no emerging divergences on the chart. Fixing the rate above the retracement level of 76.4% will increase the probability of continued growth of the pair in the direction of the next Fibo level of 100.0% (1.3300).

The Fibo grid is built according to the extremums of September 20, 2018, and January 3, 2019.

1h

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As seen on the hourly chart, the pair also fell to the retracement level of 38.2% (1.3087). After the formation of a bullish divergence, the CCI indicator performed a reversal in favor of the British pound and resumed the growth process in the direction of the retracement level of 50.0% (1.3122). Today, there are no emerging divergences on the current chart. The rebound of the pair from the Fibo level of 50.0% will again allow counting on a reversal in favor of the US currency and a slight drop in the direction of the retracement level of 38.2%.

The Fibo grid is built according to the extremums of March 27, 2019, and March 29, 2019.

Trading recommendations:

Buy deals on GBP/USD pair can be opened with targets at 1.3122 and 1.3157 and a stop loss order under the retracement level of 38.2% as bullish divergence was formed (hourly chart).

Sell deals on GBP/USD pair can be opened with the target at 1.3087 and a stop loss order above the level of 50.0% if the pair bounces off the level of 1.3122 (hourly chart).

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

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