Analysis of the GBP / USD Divergences for October 29. Another small respite for the pound

4h

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On the 4-hour chart, the quotes of the GBP / USD currency pair fell to the correction level of 76.4% - 1.2813. Bullish divergence and inaccurate release of the pair from the Fibo level of 76.4% allow traders to expect a reversal in favor of the British currency and some growth in the direction of the correctional level of 61.8% - 1.2905. New emerging divergences on October 29 is not observed in any indicator. Fixing the rate of the pair below the Fibo level of 76.4% will work in favor of resuming the fall in the direction of the next correction level of 100.0% - 1.2662.

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 reversed in favor of the British currency, after the formation of the bullish divergence of the MACD indicator, and the return to the correction level of 127.2% - 1.2833. Rebounding the pair's quotations from the Fibo level of 127.2% will allow traders to expect a reversal in favor of the American currency and a resumption of decline in the direction of the correction level of 161.8% - 1.2718. Closing the course of the pair above the Fibo level of 127.2% will increase the chances for further growth in the direction of the next level of correction 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).

Selling of the GBP / USD currency pair will be possible with the target of 1.2718 and a Stop Loss order above the level of 127.2% if the pair rebounds the correction level of 1.2833 (hourly chart).

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