Analysis of GBP/USD divergence for April 4. The pound maintains the upward mood

4h

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As seen on the 4-hour chart, the GBP/USD pair perfored a consolidation above the Fibo level of 76.4% (1.3094), which allows us to expect continued growth in the direction of the next retracement level of 100.0% (1.3300). Today, emerging divergences are not observed in any indicator. The rebound of the pair from the Fibo level of 100.0% will allow traders to expect a reversal in favor of the American dollar and a return to the retracement level of 76.4%. The consolidation of quotations below this level will work in favor of continuing the fall in the direction of the next Fibo level of 61.8% (1.2969).

The Fibo grid is built on extremes from September 20, 2018, and January 3, 2019.

1h

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As seen the hourly chart, the rebound of quotes from the Fibo level 61.8% (1.3121) worked in favor of the British pound and the pair returned to the retracement level of 50.0% (1.3171). Closing of quotes above the Fibo level of 50.0% allows traders to count on continued growth in the direction of the next retracement level of 38.2% (1.3220). The strengthening of the pair under the Fibo level of 50.0% will work in favor of the US currency and the resumption of the fall in the direction of the retracement level of 61.8% (1.3121).

The Fibo grid is built on extremes from March 11, 2019, and March 13, 2019.

Trading recommendations:

Buy deals on GBP/USD pair can be opened with the target at 1.3220 and a stop-loss order under the retracement level of 50.0% if the pair closes above the level of 1.3171 (hourly chart).

Sell deals on GBP/USD pair can be opened with the target at 1.3121 and a stop-loss order above the level of 50.0% if the pair closes below the level of 1.3171 (hourly chart).

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

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