Analysis of GBP / USD Divergences for November 9th. Bullish divergence may return demand for the pound

4h

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On the 4-hour chart, the GBP / USD currency pair, after rebounding from the correction level of 76.4% - 1.3157, performed a close below the Fibo level of 61.8% - 1.3066 and continues the process of falling towards the corrective level of 50.0% 1.2997. On November 9, bullish divergence is on the CCI indicator. The education will allow traders to expect a reversal in favor of the British currency and some growth of the pair. Fixing quotes above the Fibo level of 61.8% can be similarly interpreted as a reversal in favor of the pound sterling.

The Fibo grid is built on extremes from September 20, 2018, and October 30, 2018.

1h

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On the hourly chart, after the formation of the bearish divergence at the CCI indicator, the pair completed a fall to the Fibo level of 61.8% - 1.3044. The end of the quotations from the correction level of 61.8% will make it possible to expect a turn in favor of the British currency and a slight increase towards the correctional level of 76.4% - 1.3125. The ripening divergences on November 9th are not observed in any indicator. Fixing the pair below the Fibo level of 61.8% will work in favor of a further fall in the direction of the next correction level of 50.0%.

The Fibo grid is built on extremums from October 12, 2018, and October 30, 2018.

Recommendations to traders:

New purchases of the GBP / USD currency pair can be made with the target of 1.3125 and a Stop Loss order under the correction level of 61.8% if the pair bounces off the level of 1.3044 (hourly chart).

Selling of the GBP / USD pair will be possible with a target of 1.2978 and a Stop Loss order above the 61.8% level if the pair closes below the correction level of 1.3044 (hourly chart).

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