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14.08.2018 05:52 PM
Analysis of GBP / USD Divergences as of August 14. The pound sterling remains in a downward spike

4h

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The currency pair GBP / USD on the 4-hour chart, after the bullish divergence of the CCI indicator, reversed in favor of the British currency and began a weak growth in the direction of the correction level of 200.0% - 1.3047. The passage on August 14 of the last low divergence will work in favor of the US currency and the resumption of a decline towards the correctional level of 261.8% - 1.2638. Fixing the pair under the Fibo level of 261.8% will work in favor of continuing the fall towards the next correction level of 323.6% - 1.2230.

The Fibo grid is built on extremes from March 1, 2018, and April 17, 2018.

1h

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On the hourly chart, the pair completed the fixation below the Fibo level of 161.8% - 1.2800. As a result, the process of falling can be continued in the direction of the correction level of 200.0% - 1.2702. There are no maturing divergences today. The rebound of quotes from the Fibo level of 200.0% will allow us to expect some growth in the direction of the correction level of 161.8%. The pair's retracement from the correction level of 161.8% will work in favor of the resumption of the fall towards the corrective level of 200.0%.

The Fibo grid is built on extremes from July 19, 2018, and July 26, 2018.

Recommendations for traders:

Purchases of the GBP / USD pair will be possible with the target of 1.2888 and a Stop Loss order under the correction level of 261.8% if there is a close above the Fibo level of 1,2800 (hourly chart).

New sales of the GBP / USD pair will be possible for the purpose of 1.2702 and a Stop Loss order above the correction level of 161.8% if there is a retreat from the Fibo level of 1.2800.

Samir Klishi,
Analytical expert of InstaTrade
© 2007-2025

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