Analysis of the divergence of GBP / USD on October 30. Bearish divergence pushes the pound down again

4h

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On the 4-hour chart, the GBP / USD currency pair reversed in favor of the US dollar and closed below the correction level of 76.4% - 1.2813, after the formation of a bearish divergence in the CCI indicator. As a result, on October 30, the fall in quotations can be continued in the direction of the next correction level of 100.0% - 1.2662. Fixing quotations above the Fibo level of 76.4% will work in favor of the British currency and some growth in the direction of the correction level of 61.8% - 1.2905.

The Fibo grid was built according to extremums of August 15, 2018, and September 20, 2018.

1h

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On the hourly chart, the pair rebounded from the correction level of 127.2% - 1.2833 and a turn in favor of the American dollar. Thus, today the fall in quotations may continue in the direction of the correctional level of 161.8% - 1.2718. Maturing divergences are not observed. Fixing quotations above the Fibo level of 127.2% will work in favor of the British currency and will allow us to expect some growth in the direction of the correction level of 100.0% - 1.2924.

The Fibo grid was built on extremes from October 4, 2018, and October 12, 2018.

Recommendations to traders:

Purchases of the GBP / USD currency pair can be made with a target of 1.2924 and a Stop Loss order under the correction level of 127.2% if the pair closes above 1.2833 (hourly chart).

The currency pair GBP / USD can be sold now with a target of 1.2718 and a Stop Loss order above the level of 127.2%, since the pair completed the rebound from the correction level of 1.2833 (hourly chart).

The material has been provided by InstaForex Company - www.instaforex.com