Analysis of GBP / USD Divergences for November 7th. Pound sterling continues to catch up

4h

analytics5be30b0d661c6.png

On the 4-hour chart, the GBP / USD currency pair continues the growth process and completed the close above the Fibo level 61.8% - 1.3066. Thus, the growth of quotations can be continued on November 7 in the direction of the correction level of 76.4% - 1.3157. Rebounding the course of the pair from the Fibo level of 76.4% will allow traders to expect a reversal in favor of the US dollar and a slight decline in the direction of the correctional level of 61.8%. There are no ripening divergences today. Fixing the pair above the Fibo level of 76.4% will work in favor of continuing growth in the direction of the next correction level of 100.0% - 1.3297.

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

1h

HSePX8Zojrt_ze-g_EbdI9uCsPIF4qegWPCH8oEP

On the hourly chart, the currency pair made an increase to the correction level of 76.4% - 1.3125. On November 7, the bearish divergence at the CCI indicator is brewing. The education will allow us to count on a turn in favor of the US currency and a slight drop in the direction of the Fibo level of 61.8% - 1.3044. Reversing quotes from the correction level of 76.4% will similarly work in favor of the American currency. Fixing the pair above the Fibo level of 76.4% will increase the likelihood of continued growth in the direction of the next correction level of 100.0% - 1.3257.

The Fibo grid was 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 1.3357 and a Stop Loss order under the correction level of 76.4% if the pair closes above 1.3125 (hourly chart).

Selling of the GBP / USD currency pair will be possible with a target of 1.3044 and a Stop Loss order above the level of 76.4% if the pair bounces off the correction level of 1.3125 (hourly chart), especially in conjunction with the bearish divergence.

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