03.07.201810:56 Forex Analysis & Reviews: Analysis of GBP/USD Divergences as of July 3. Slight uncertainty

4h

The GBP/USD pair on the 4-hour chart continues the decline in the direction of the correction level of 200.0% - 1.3048 after the formation of the bearish divergence at the CCI indicator. On July 3, no new emerging divergences are observed in any indicator. The retreat of quotations from the Fibo level of 200.0% will allow traders to expect a reversal in favor of the British currency and some growth in the direction of the correction level of 161.8% - 1.3301. The consolidation of the quotes below the Fibo level of 200.0% will increase the chances of continuing the fall in the direction of the next correction level of 261.8% - 1.2638.

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

1h

On the hourly chart, the GBP/USD pair rebounded first from the correction level of 23.6% - 1.3111, and then from the Fibo level 38.2% - 1.3150. Strengthening the pair's exchange rate above the correction level of 38.2% will allow traders to expect continued growth in the direction of corrective levels of 50.0% - 1.3182 and 61.8% - 1.3212. There are no emerging divergences today. The consolidation of quotes under the Fibo level of 23.6% will increase the chances of the pair to further fall in the direction of the correction level of 0.0% - 1.3049.

The Fibo grid is built on the extremes of June 22, 2018 and June 28, 2018.

Recommendations for traders:

Buying of the GBP/USD pair can be opened with targets of 1.3182 and 1.3212 and a Stop Loss order under the correction level of 1.3150 if the closure above the Fibo level is 38.2% (hour chart).

Selling the GBP/USD pair can be made with a target of 1.3049 and a Stop Loss order above the correction level of 23.6% will occur if the closing is under the Fibo level of 1.3111 (hourly chart).