Analysis of GBP / USD Divergences for December 14th. The pound sterling is preparing for a new fall

4h

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The GBP / USD currency pair on the 4-hour chart performed the second rebound from the correction level of 100.0% - 1.2662 with a reversal in favor of the American dollar. As a result, on December 14, the process of falling quotations can be continued in the direction of the correctional level of 127.2% - 1.2491. There are no ripening divergences today. Fixing the pair above the Fibo level of 100.0% will allow us to expect growth to resume in the direction of the next correction level of 76.4% - 1.2812.

The Fibo grid was built on extremes from August 15, 2018, and September 20, 2018.

1h

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On the hourly chart, after the formation of a bearish divergence, the quotes performed a reversal in favor of the US currency and began the process of returning to the correctional level of 127.2% - 1.2566. The rebound of the pair from the Fibo level of 127.2% will make it possible to expect a turn in favor of the British currency and the resumption of growth in the direction of the correction level of 100.0% - 1.2696. Fixing quotations below the Fibo level of 127.2% will increase the chances for a further fall in the direction of the next correction level of 161.8% - 1.2400.

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

Recommendations to traders:

Purchases of the GBP / USD currency pair can be made with the target of 1.2696 and a Stop Loss order below the level of 127.2% if the pair bounces off of the correction level of 1.2566 (hourly chart).

Sales of the GBP / USD currency pair can be carried out now with a target of 1.2566 and a Stop Loss order over the peak of divergence since a bearish divergence has formed (4-hour chart).

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