Analysis of GBP / USD Divergences for December 18th. Possible rebound from 1.2660

4h

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On a 4-hour chart, the GBP / USD currency pair reversed in favor of the pound sterling after the formation of the bullish divergence at the CCI indicator and continues the growth process in the direction of the correction level of 100.0% - 1.2662. Releasing the pair on December 18 from this Fibo level will allow us to expect a reversal in favor of the US currency and a slight drop in the direction of the correction level of 127.2% - 1.2491. Fixing quotes above the Fibo level of 100.0% will increase the pair's chances for further growth 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.

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On the hourly chart, the currency pair reversed in favor of the British currency and continues to grow in the direction of the correction level of 100.0% - 1.2696. Overcoming divergences today are not observed in any indicator. Reversing the quotations from the Fibo level of 100.0% will allow traders to expect a reversal in favor of the US currency and a slight decline in the direction of the correctional level of 127.2% - 1.2566. Fixing the rate below the Fibo level of 127.2% will similarly work in favor of the American currency.

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

Recommendations to traders:

Purchases of the GBP / USD currency pair can be carried out with the target of 1.2662 and a Stop Loss order below the level of 127.2% (hourly chart), as the pair closed above the correction level of 1.2566 (hourly chart).

Sales of the GBP / USD currency pair can be carried out with a target of 1.2566 and a Stop Loss order above the level of 100.0% if the pair bounces off of the level of 1.2696 (hourly chart).

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