03.01.201909:37 Forex Analysis & Reviews: Analysis of GBP / USD Divergences for January 3. The pound sterling began the year with a collapse of almost 400 points

4h

The GBP / USD currency pair on the 4-hour chart rebounded from the correction level of 76.4% - 1.2812, a reversal in favor of the US dollar and a fall to the Fibo level of 127.2% - 1.2491. Rebounding the quotations of the pair from the level of 127.2% makes it possible to count on a reversal in favor of the British currency and some growth in the direction of the correction level of 100.0% - 1.2662. There are no ripening divergences on the current chart on January 3, and a close below the Fibo level of 127.2% will work in favor of a further fall towards the next correction level of 161.8% - 1.2269.

The Fibo grid is built on extremes from August 15, 2018, and September 20, 2018.

1h

On the hourly chart, the pair quotes performed a fall to the correctional level of 100.0% - 1.2476 on the new Fibo grid. Rebounding the pair from the correction level of 100.0% allowed a return to the Fibo level of 76.4% - 1.2556. Rebounding from this level will allow us to expect a reversal in favor of the US currency and the resumption of a fall to the Fibo level of 100.0%. Fixing quotations above the level of 76.4% will work in favor of continuing growth in the direction of the next correction level of 61.8% - 1.2606.

The Fibo grid is built on extremums from December 12, 2018, and December 31, 2018.

Recommendations to traders:

Purchases of the GBP / USD currency pair can be made with the target of 1.2606 and a Stop Loss order below the level of 76.4% if the pair closes above the Fibo level of 1.2556 (hourly chart).

Sales of the GBP / USD currency pair can be carried out with the target of 1.2476 and a Stop Loss order above the level of 76.4% if the pair bounces off the level of 1.2556 (hourly chart).