FX.co ★ Analysis of the divergence of GBP / USD February 11. Divergence and rebound incline pound to fall

4h

The currency pair GBP / USD on a 4-hour chart performed a double rebound from the correction level of 61.8% - 1.2969 and a reversal in favor of the American dollar. As a result, on February 11, the pair can return to the Fibo level of 50.0% - 1.2869. Over the current chart, there are no divergences observed in any indicator. Closing quotes of the pair above the Fibo level of 61.8% will work in favor of the British currency and resumption of growth in the direction of the correctional level of 76.4% - 1.3094.

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

1h

On the hourly chart, bearish divergence allowed the pair to make a U-turn in favor of the US currency and consolidation below the Fibo level of 50.0% - 1.2943. Thus, the drop in quotations can be continued in the direction of the correction level of 61.8% - 1.2878. Closing the rate of steam above the level of 50.0% can be interpreted as a turn in favor of the British currency and expect a resumption of growth in the direction of the correction level of 38.2% - 1.3008.

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 made with the target of 1.3008 and a Stop Loss order below the level of 50.0% if the pair closes above the level of 1.2943 (hourly chart).

The currency pair GBP / USD can be sold now with a target of 1.2878 and a Stop Loss order above the level of 50.0%, as the pair completed the closure below the Fibo level of 1.2943 (hourly chart).