28.02.201908:59 Forex Analysis & Reviews: Analysis of the divergence of GBP / USD for February 28. The bearish divergence and rebound - a new chance for the pair to fall

4h

The GBP / USD pair on the 4-hour chart completed the peak of the bearish divergence and close above the Fibo level of 100.0% - 1.3300. As a result, on February 28, the growth process can be continued in the direction of the next correction level of 127.2% - 1.3530. New emerging divergences today are not observed in any indicator. Fixing the rate of the pair below the Fibo level of 100.0% can be interpreted as a reversal in favor of the US dollar and expect a slight decline in the direction of the correction 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, the pair completed the growth to the correctional level of 127.2% - 1.3337. Quoting the quotations from the Fibo level of 127.2% allowed the pair to make a U-turn in favor of the US currency and begin the process of falling in the direction of the correction level of 100.0% - 1.3217. Bearing divergence in the MACD indicator increases the likelihood of the pair to continue falling. However, closing quotations above the Fibo level of 127.2% will work in favor of the pound sterling and the resumption of growth in the direction of the correction level of 161.8% - 1.3492.

The Fibo grid is built on extremes from January 25, 2019, and February 14, 2019.

Recommendations to traders:

Purchases of the GBP / USD pair can be made with the target of 1.3349 and a Stop Loss order below the level of 127.2% if the pair closes above 1.3337 (hourly chart).

Sales of the GBP / USD pair can be carried out now with the target of 1.3217 and a Stop Loss order above the level of 127.2% since the pair has completed the rebound from the level of 1.3337 (hourly chart).