FX.co ★ Analysis of GBP / USD Divergences for February 8. The pound has rolled back and is ready for a new fall

4h

The currency pair GBP / USD on the 4-hour chart performed a rebound from the correction level of 50.0% - 1.2869, an increase to the Fibo level of 61.8% - 1.2969 and rebound from it. As a result, on February 8, the pair is ready to turn in favor of the American currency and return the quotes to the level of 50.0%. There is no indicator of the emerging divergences today. Fixing the pair above the Fibo level of 61.8% will work in favor of continuing growth in the direction of the next correction level of 76.4% - 1.3094.

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

1h

On the hourly chart, after the pair's rebound from the correction level of 61.8% - 1.2878, the quotations made a U-turn in favor of the British currency and a close above the Fibo level of 50.0% - 1.2943. Thus, the growth of quotations can be continued in the direction of the next correction level of 38.2% - 1.3008. Fixing the pair below the Fibo level of 50.0% can be interpreted as a reversal in favor of the American dollar and it is expected to resume falling towards the correction level of 61.8% - 1.2878.

The Fibo grid was built on extremes from January 15, 2019, and January 25, 2019.

Recommendations to traders:

Purchases of the currency pair GBP / USD can be carried out now with the target of 1.3008 and a Stop Loss order below the level of 50.0%, since the pair completed the close above the level of 1.2943 (hourly chart).

New sales of the currency pair GBP / USD will be possible with the target of 1.2878 and a Stop Loss order above the level of 50.0% if the pair closes below the Fibo level of 1.2943 (hourly chart).