4h
The GBP / USD currency pair on the 4-hour chart performed a new rebound from the correction level of 100.0% - 1.2662 with a reversal in favor of the American currency. As a result, on December 20, the drop in quotations can be continued in the direction of the correctional level of 127.2% - 1.2491. Fixing the pair above the Fibo level of 100.0% can be interpreted in favor of the British currency and count on continued growth in the direction of the next correctional level of 76.4% - 1.2812.
The Fibo grid is built on extremes from August 15, 2018, and September 20, 2018.
1h
On the hourly chart, the pair, after the end of the correction level of 100.0% - 1.2696, performed a U-turn in favor of the US currency and continues the process of falling in the direction of the correctional level of 127.2% - 1.2566. Overcoming divergences are not visible today. Quoting the quotations from the Fibo level of 127.2% will allow traders to count on a reversal in favor of the British currency and some growth in the direction of the correction level of 100.0%. Fixing the rate of the pair 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 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 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 above the level of 100.0%, as the pair completed the rebound from the level of 1.2696 (hourly chart) with the formation of a bearish divergence.
The material has been provided by InstaForex Company - www.instaforex.com