Showing posts with label Analysis of the GBP / USD divergence for March 20. Insurmountable obstacle 1.3300. Show all posts
Showing posts with label Analysis of the GBP / USD divergence for March 20. Insurmountable obstacle 1.3300. Show all posts

Analysis of the GBP / USD divergence for March 20. Insurmountable obstacle 1.3300

4h

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On the 4-hour chart, the pair GBP / USD made a new return to the retracement level of 100.0% (1.3300). However, the Fibo rebounded with the formation of a bearish divergence at the MACD indicator and a reversal of the pair in favor of the US dollar. Thus, on March 20, the drop in quotations may continue in the direction of the Fibo level of 76.4% (1.3094). Fixing the pair above 100.0% will increase the likelihood of continued growth in the direction of the retracement level of 127.2% (1.3530).

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

1h

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As seen on the hourly chart, the pair made another turn around the retracement level of 23.6% (1.3228) in favor of the American dollar and the beginning of a fall in the direction of the Fibo level of 38.2% (1.3220). Rebounding the pair from the level of 38.2% (which is very likely) will work in favor of the British currency and the resumption of growth in the direction of all that level of retracement 23.6%. Closing the pair above the Fibo level of 23.6% will increase the chances for further growth in the direction of the next retracement level of 0.0% (1.3380).

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

Trading advice

Buy deals on GBP / USD pair can be opened with the target at 1.3380 and a stop-loss order below the level of 23.6% if the pair closes above 1.3281 (hourly chart).

Sell deals on GBP / USD pair can be opened with the target at 1.3220 and a stop-loss order above the level of 23.6% since the pair has completed the rebound from the retracement level of 1.3281 (hourly chart).

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