Analysis of GBP / USD Divergences for November 28th. Bullish divergence gives a pound a chance for growth

4h

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The GBP / USD pair on the 4-hour chart continues the process of falling in the direction of the correctional level 100.0% - 1.2662. A bullish divergence near the MACD indicator is brewing on November 28. The formation of a bullish divergence will allow traders to expect a reversal in favor of the pound sterling and some growth in the direction of the correction level of 76.4% - 1.2812. The end of the pair quotes from the Fibo level of 100.0% will similarly work in favor of the British currency.

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

1h

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On the hourly chart, the pair closed below the Fibo level 76.4% - 1.2809. Thus, the depreciation of the pair can continue today in the direction of the next level of correction 100.0% - 1.2696. Also, bearish divergence is brewing at the CCI indicator, which allows to expect the continuation of the fall in quotations. However, the bullish divergence (still maturing) on the 4-hour chart has a higher priority. Fixing the rate of the pair below the Fibo level of 100.0% will increase the chances for a further fall in the direction of the next correction level of 127.2% - 1.2568.

The Fibo net is built on extremes from October 30, 2018 and November 7, 2018.

Recommendations to traders:

You can make purchases of the GBP / USD pair with a target of 1.2809 and a Stop Loss order under the correction level of 100.0% if the pair bounces back from the 1.2696 level (hourly chart).

A pair of GBP / USD can be sold now with a target of 1.2696 and a Stop Loss order above the level of 76.4%, as the pair completed closing below the 1.2809 level (hourly chart) and hold the orders until a bullish divergence is formed on the 4-hour chart.

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