FX.co ★ Analysis of GBP / USD Divergences on August 10. The pound continues to depreciate against the dollar

4h

Quotations of the currency pair GBP / USD on the 4-hour chart continue the decline in the direction of the corrective level of 261.8% - 1.2638. August 10 is maturing bullish divergence in the CCI indicator. Its formation will allow traders to expect a turn in favor of the British currency and some growth in the direction of the correction level of 200.0% - 1.3047. Quit of quotes from the level of Fibo 261.8% similarly will work in favor of the beginning of the growth of the pair. The consolidation of the exchange rate under the correction level of 261.8% will increase the chances of further falling in the direction of the next level of Fibo 323.6% - 1.2230.

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

1h

On the hourly chart, the pair completed another retreat from the correction level of 127.2% to 1.2888 and resumed the fall to the Fibo level of 161.8% to 1.2800. The bovine divergence is brewing at the CCI indicator. If it is formed, then the pair can perform a turn in favor of the British currency and begin the growth process in the direction of the corrective level of 127.2% - 1.2888. Quit of quotations from the level of Fibo 161.8% likewise will allow to count on some growth of the pair. The consolidation of the exchange rate under the correction level of 161.8% will increase the probability of continuing the fall towards the next Fibo level of 200.0% - 1.2702.

The Fibo grid is built on extremes from July 19, 2018, and July 26, 2018.

Recommendations for traders:

Purchases of the GBP / USD pair will be possible with the target of 1.2888 and a stop loss order under the correction level of 161.8% if the Fibo level breaks off at 1.2800 (hourly chart).

New sales of the GBP / USD pair will be possible with a target of 1.2702 and a Stop Loss order above the correction level of 161.8% if there is a close under the Fibo level of 1.2800.