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.
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.
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