Analysis of GBP/USD divergence for April 5. Two bullish divergences push the pair up

4h

25WkQ3E4s60poFc6bYVFefJWcFn0OFyOmWNVm6pO

As seen on the 4-hour chart, the GBP/USD pair performed a reversal in favor of the US currency and closed below the retracement level of 76.4% (1.3094) after the formation of a bearish divergence at the MACD indicator. However, the second bullish divergence at the CCI indicator has already been formed, which allows traders to count on a reversal in favor of the British pound and consolidation above the Fibo level of 76.4%.

The Fibo grid is based on the grounds of extremums from September 20, 2018, and January 3, 2019.

1h

cJCijfqUNWOix9k-m7NU8Bw3QbNJQwnHwcIg3bhp

As seen on the hourly chart, the pair's quotes fell to the retracement level of 76.4% (1.3060). The bullish divergence at the MACD indicator and the pair's rebound from the Fibo level of 76.4% worked in favor of the pound sterling and the growth process began in the direction of the retracement level of 61.8% (1.3121). The retreat of quotations from this level will allow traders to expect a reversal in favor of the American currency and a return to the retracement level of 76.4%.

The Fibo grid is based on the grounds of extremums from March 11, 2019, and March 13, 2019.

Trading recommendations:

Buy deals on GBP/USD pair can be opened with a target at 1.3121 and a stop-loss order under the retracement level of 76.4% since the pair has completed the rebound from the level of 1.3060 (hourly chart).

Sell deals on GBP/USD pair can be opened with the target at 1.3060 and a stop-loss order above the level of 61.8% if the pair bounces off the level of 1.3121 (hourly chart).

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

Comments