Analysis of GBP / USD Divergences for October 22. The pound has growth potential
October 22, 2018 10:24 am
4h
On the 4-hour chart, the GBP / USD quotes consolidated below the correction level of 23.6% – 1.3067, but after the formation of bullish divergence, a reversal was made in favor of the British currency and a return to the Fibo level of 23.6%. Fixing the rate on October 22 above the correction level of 23.6% will increase the probability of continued growth in the direction of the next correction level of 38.2% – 1.3316. Rebound quotes from the Fibo level of 23.6% will work in favor of resuming the fall of the pair.
The Fibo grid was built according to extremums of April 17, 2018, and August 15, 2018.
1h
On the hourly chart, the pair rebounded from the Fibo level of 50.0% – 1.3091, dropped to the correction level of 61.8% – 1.3051, and rebounded from it. Thus, today, the growth process can be continued in the direction of the correctional level of 50.0%. None of the indicators have maturing divergences. The end of the pair quotes from the Fibo level of 50.0% will again work in favor of the US dollar and return to the correctional level of 61.8%.
The Fibo grid was built on extremes from October 4, 2018, and October 12, 2018.
Recommendations to traders:
Purchases of the GBP / USD currency pair can be carried out now with targets at 1.3091 and 1.3130 and a Stop Loss order under the correction level of 61.8%, since the pair completed the rebound from the level of 1.3051 (hourly chart).
Selling a pair of GBP / USD will be possible with targets at 1.3051 and 1.3003 and a Stop Loss order above the 50.0% level if the pair rebounds from the Fibo level of 1.3091 (hourly chart).
The material has been provided by InstaForex Company – www.instaforex.com
4h
On the 4-hour chart, the GBP / USD quotes consolidated below the correction level of 23.6% – 1.3067, but after the formation of bullish divergence, a reversal was made in favor of the British currency and a return to the Fibo level of 23.6%. Fixing the rate on October 22 above the correction level of 23.6% will increase the probability of continued growth in the direction of the next correction level of 38.2% – 1.3316. Rebound quotes from the Fibo level of 23.6% will work in favor of resuming the fall of the pair.
The Fibo grid was built according to extremums of April 17, 2018, and August 15, 2018.
1h
On the hourly chart, the pair rebounded from the Fibo level of 50.0% – 1.3091, dropped to the correction level of 61.8% – 1.3051, and rebounded from it. Thus, today, the growth process can be continued in the direction of the correctional level of 50.0%. None of the indicators have maturing divergences. The end of the pair quotes from the Fibo level of 50.0% will again work in favor of the US dollar and return to the correctional level of 61.8%.
The Fibo grid was built on extremes from October 4, 2018, and October 12, 2018.
Recommendations to traders:
Purchases of the GBP / USD currency pair can be carried out now with targets at 1.3091 and 1.3130 and a Stop Loss order under the correction level of 61.8%, since the pair completed the rebound from the level of 1.3051 (hourly chart).
Selling a pair of GBP / USD will be possible with targets at 1.3051 and 1.3003 and a Stop Loss order above the 50.0% level if the pair rebounds from the Fibo level of 1.3091 (hourly chart).
The material has been provided by InstaForex Company – www.instaforex.com
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