Analysis of GBP/USD divergence for April 8. Bullish divergence pushes the pair to growth again

4h

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As seen on the 4-hour chart, the GBP/USD pair performed a new reversal in favor of the British currency and began the process of returning to the Fibo level of 76.4% (1.3094), after the formation of the new bullish divergence of the MACD indicator. The rebound of the pair on April 8 from the level of 76.4% will allow traders to count on a reversal in favor of the American dollar and the resumption of a fall in the direction of the retracement level of 61.8% (1.2969). Closing the pair above the Fibo level of 76.4% will increase the chances of continued growth towards the next retracement level of 100.0% (1.3300).

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

1h

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As seen on the hourly chart, the quotes of the pair, without the formation of any signal, performed a reversal in favor of the British pound and consolidation above retracement level of 76.4% (1.3060). As a result, the growth process can be continued in the direction of the next Fibo level of 61.8% (1.3121). There are no emerging divergences on the current chart. The consolidation of quotations back under retracement level of 76.4% can be interpreted as a reversal in favor of the US currency and the resumption of a fall in the direction of the Fibo level 100.0% (1.2961) is expected.

The Fibo grid is built on the grounds of the 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 correction level of 76.4% as the pair completed closing above the level of 1.3060 (hourly chart).

Sell deals on GBP/USD pair can be opened with the target at 1.2961 and a stop loss order above the level of 76.4% if the pair consolidates below the level of 1.3060 (hourly chart).

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

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