Analysis of GBP/USD divergences for April 17th. The US dollar again takes the upper hand in the confrontation with the pound

4h

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As seen on the 4-hour chart, the GBP/USD pair performed a reversal in favor of the American currency with some delay after the formation of a bearish divergence in the CCI indicator. As a result, on April 17, the process of falling in the direction of the retracement level of 61.8% (1.2969) began and continues. Today, the emerging divergence is not observed in any indicator. Rebounding the quotations of the pair from the Fibo level of 61.8% will make it possible to expect a reversal in favor of the British currency and some growth towards the retracement level of 76.4% (1.3094).

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

1h

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As seen on the hourly chart, the GBP/USD pair fell to the retracement level of 23.6% (1.3045) and, after the formation of the bullish divergence of the CCI indicator, reversed in favor of the British currency and started the process of growth towards the retracement level of 38.2% (1.3088). The end of the quotations from the Fibo level of 38.2% will make it possible to expect a reversal in favor of the US dollar and a resumption of decline in the direction of the retracement level of 23.6%.

The Fibo grid is built on extremes from March 27, 2019, and March 29, 2019.

Forecast for GBP/USD and recommendations for traders:

Buy deals on GBP/USD pair can be opened with a target at 1.3088 and a stop loss order under the retracement level of 23.6% since the pair has rebounded from the level of 1.3045 with the formation of bullish divergence (hourly chart).

Sell deals on GBP/USD pair will be possible with the target at 1.2976 and a stop loss order above the level of 23.6% if the pair closes below the level of 1.3045 (hourly chart).

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

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