FX.co ★ Analysis of GBP / USD Divergences for January 17th. Pound sterling stalled

4h

The currency pair GBP / USD on the 4-hour chart completed a return to the correction level of 50.0% - 1.2869. Resetting the pair from this level will allow traders to expect a reversal in favor of the American currency and a new drop in the direction of the correctional level of 38.2% - 1.2765. Overcoming divergences are not visible today. Closing the pair above the Fibo level of 50.0% will work in favor of continuing growth in the direction of the next correction level of 61.8% - 1.2970.

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

1h

On the hourly chart, the currency pair continues to trade between the correction levels of 100.0% - 1.2815 and 127.2% - 1.2916. Absolutely lateral movement. The end of the first or second border of this kind of side corridor will allow you to expect a movement to the opposite border. The planned divergence is not observed. Closing above the correction level of 127.2% will allow traders to expect the pair to continue to grow in the direction of the level of 161.8% - 1.3048.

The Fibo grid is built on extremes from December 31, 2018, and January 3, 2019.

Recommendations to traders:

New purchases of the GBP / USD currency pair can be made with the target of 1.3048 and a Stop Loss order below the level of 127.2% if the pair closes above the level of 1.2916 (hourly chart).

Sales of the GBP / USD currency pair can be carried out with a target of 1.2815 and a Stop Loss order above the level of 127.2% if the pair bounces off of the level of 1.2916 (hourly chart).