Analysis of GBP / USD Divergences for July 5. Bearish divergence - a signal for sales

4H

The GBP / USD pair continues the growth process to the corrective level of 161.8% - 1.3301 on the 4-hour chart. There was a bearish divergence in the CCI indicator, which allows you to count on the reversal in favor of the US currency and a slight drop in the direction of the correction level of 200.0% - 1.3048. The passage of the last divergence of the future will work in favor of the British currency and the resumption of growth towards the level of Fibo 161.8% at 1.3301, and will also cancel the divergence.

The Fibo grid is built on extremes from March 1, 2018, and April 17, 2018.

1H

On the hourly chart, the GBP / USD pair posted a fixation above the correction level of 61.8% to 1.3212 and a rise to the Fibo level of 76.4% to 1.3252. It did not happen. There are no other signals and no emerging divergences on July 5. The consolidation of the pair's rate at the correcting level of 76.4% allows the expectation of the resumption of growth towards the corrective level of 100.0% at 1.3314. Fixing quotes below the Fibo level of 61.8% will work in favor of maintaining the decline in the direction of the 50.0% correction level at 1.3182.

The Fibo grid is formed on the boundary of June 22, 2018, and June 28, 2018.

Recommendations for traders:

Purchases of the GBP / USD pair can be opened with a target of 1.3252 and if there is a retreat from the Fibo level of 61.8% (hourly chart), a Stop Loss order can be placed under the correction level of 1.3213.

Selling of the GBP / USD pair will be possible with targets of 1.3182 and 1.3150 and if there is a close to the Fibo level of 1.3213, a Stop Loss order can be placed above the correction level of 61.8%.