Analysis of GBP/USD divergence for April 3. The pound once again pulled up

4h

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As seen on the 4-hour chart, the pair GBP/USD performed a reversal in favor of the pound and consolidation above the retracement level of 76.4% - 1.3094. As a result, on April 3, the growth process can be continued in the direction of the next Fibo level of 100.0% (1.3300). Today, emerging divergences are not observed in any indicator. The closing of the pair under the retracement level of 76.4% can be interpreted as a reversal in favor of the American currency and one can expect a slight fall towards the Fibo level of 61.8% (1.2969).

The Fibo grid is built according to the extremes of September 20, 2018, and January 3, 2019.

1h

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As seen on the hourly chart, the pair completed a close above the Fibo level of 61.8% (1.3121), which allows it to continue the growth process in the direction of the retracement level of 50.0% (1.3171). The retreat of quotations from this level will allow us to expect a reversal in favor of the US dollar and a slight drop in the direction of the retracement level of 61.8%. The consolidation of the pair's rate under the level of 61.8% will increase the probability of falling in the direction of the next retracement level of 76.4% (1.3061).

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

Trading recommendations:

Buy deals on GBP/USD pair can be opened with the target at 1.3171 and a stop-loss order under the retracement level of 61.8%, as the pair completed closing above the level of 1.3121 (hourly chart).

Sell deals on GBP/USD pair can be opened with the target at 1.3061 and a stop-loss order above the level of 61.8% if the pair closes below the level of 1.3121 (hourly chart).

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

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