Analysis of the GBP / USD Divergences for December 5th. The pound failed to make a breakthrough of 1.28.

4h

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The GBP / USD currency pair on the 4-hour chart performed a rebound from the correction level of 76.4% - 1.2812 and a fall to the correction level of 100.0% - 1.2662. Releasing the pair on December 5 from the Fibo level of 100.0% will make it possible to count on a turn in favor of the British currency and some growth in the direction of the correction level of 76.4%. There are no maturing divergences on the current chart. Fixing quotes under the Fibo level of 100.0% will increase the probability of a further fall in the direction of the correction level of 127.2% - 1.2492.

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 a new end of the correction level of 76.4% - 1.2809, the currency pair completed a fall to the level of 100.0% - 1.2696. The end of the pair's quotes from the Fibo level of 100.0% will work in favor of the pound sterling and the beginning of growth in the direction of the correctional level of 76.4% - 1.2809. Fixing the rate of the pair below the Fibo level of 100.0% will work in favor of continuing to fall in the direction of the next correction level of 127.2% - 1.2567.

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

Recommendations to traders:

New purchases of the GBP / USD currency pair can be made with a target of 1.2809 and a Stop Loss order under the correction level of 100.0% if the pair bounces off the level of 1.2696 (hourly chart).

New sales of the GBP / USD currency pair can be made with the target of 1.2567 and a Stop Loss order above the level of 100.0% if the closing is completed below the 1.2696 level (hourly chart).

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