Analysis of GBP/USD divergences for April 16. Pound sterling remains in the side corridor

4h

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As seen on the 4-hour chart, the GBP/USD pair completed two more closures above the retracement level of 76.4% and then below it. As a result, traders can again expect some fall in the direction of the Fibo level of 61.8% (1.2969). However, as the practice of the last days' shows, the pair is unlikely to fall below the levels of 1.3030 and 1.3040. The hourly chart now clearly shows the sideways movement of the pair. Although the bearish divergence of the CCI indicator plays in favor of the US dollar, it does not greatly increase the probability of a fall in the current conditions.

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 another increase to the retracement level of 50.0% (1.3122) and a turn in favor of the American currency without a halt. Under the Fibo level of 38.2% (1.3087), it was not possible to close, so there is a possibility of another return of quotations to the retracement level of 50.0% (1.3122). Fixing the quotes below the Fibo level of 38.2% will slightly increase the pair's chances of falling to the retracement level of 23.6% (1.3046). There are no emerging divergences in any indicator on April 16.

The Fibo grid is built according to the extremes of March 27, 2019, and March 29, 2019.

Trading recommendations:

Buy deals on GBP/USD pair can be opened with a target at 1.3122 and a stop loss order under the retracement level of 38.2% as the pair completed closing above the level of 1.3087 (hourly chart).

Sell deals on GBP/USD pair can be opened with the target at 1.3046 and a stop loss order above the level of 38.2% if the pair closes below the level of 1.3087 (hourly chart).

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

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