Showing posts with label Analysis of GBP/USD divergence for March 29. The pound is also ready to roll back due to bullish divergence. Show all posts
Showing posts with label Analysis of GBP/USD divergence for March 29. The pound is also ready to roll back due to bullish divergence. Show all posts

Analysis of GBP/USD divergence for March 29. The pound is also ready to roll back due to bullish divergence

4h

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As seen on the 4-hour chart, the GBP/USD pair resumed the process of falling and closed under the retracement level of 76.4% (1.3094). However, the formation of a bullish divergence in the CCI indicator allows traders to expect a reversal in favor of the pound sterling and some growth of quotations. The close of the pair above the Fibo level of 76.4% will similarly work in favor of the currency of England and the beginning of growth in the direction of the retracement level of 100.0% (1.3300). The passage of the pair of low divergence will increase the chances of a further fall in the direction of the Fibo level of 61.8% (1.2969).

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

1h

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As seen on the hourly chart, the pair made a strong fall, but then followed a reversal in favor of the British pound and a close above the retracement level of 76.4% (1.3061). As a result, on March 29, the growth of the pair may be continued in the direction of the next retracement level of 61.8% (1.3121). There is no indicator of the emerging divergences today. The closing of quotations below the Fibo level of 76.4% will again work in favor of the American currency and the resumption of the fall in the direction of the retracement level of 100.0% (1.2961).

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

Trading advice:

Buy deals on GBP/USD pair can be opened with a target at 1.3121 and a stop-loss order below the level of 76.4%, as the pair completed closing above the level of 1.3061 (hourly chart).

Sell deals on GBP/USD pair can be opened with the target at 1.2961 and a stop-loss order above the level of 76.4% if the pair closes below the retracement level of 1.3061 (hourly chart).

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