Analysis of the GBP / USD Divergences for November 1. The pound has finally started to grow

4h

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On the 4-hour chart, after the formation of the bullish divergence, the quotes of the GBP / USD currency pair fixed above the Fibo level of 76.4% - 1.2813. Thus, the growth process continues on November 1 in the direction of the next correction level of 61.8% - 1.2905. New emerging divergences today are not observed. Reversing the quotations from the Fibo level of 61.8% will allow traders to expect a reversal in favor of the American currency and a slight decline in the direction of the correctional level of 76.4%.

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 also started the growth process and completed the consolidation above the correctional level of 127.2% - 1.2833. Thus, the growth can be continued in the direction of the next correction level of 100.0% - 1.2924. None of the indicators have maturing divergences on the current chart. Fixing the pair below the Fibo level of 127.2% can be interpreted as a reversal in favor of the US dollar and expect a resumption of the fall in the direction of the correction level of 161.8% - 1.2718.

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 carried out now with a target of 1.2924 and a Stop Loss order under the correction level of 127.2%, as the pair completed closing above the 1.2833 level (hourly chart).

To sell the GBP / USD currency pair, it will be possible with the target at 1.2718 and a Stop Loss order above the level of 127.2% if the pair closes below the correction level of 1.2833 (hourly chart).

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