4h
On the 4-hour chart, the GBP / USD currency pair continues to fall in the direction of the correctional level of 23.6% - 1.2837. The fall is very strong and almost non-stop. Overlapping divergences on November 12th are not observed in any indicator. Reversing the quotations from the Fibo level of 23.6% will allow traders to expect a reversal in favor of the EU currency and some growth in the direction of the correction level of 38.2% - 1.2925. Fixing quotes below the Fibo level of 23.6% will increase the probability of a further fall in the direction of the correction level of 0.0% - 1.2697.
The Fibo grid was built on extremes from September 20, 2018, and October 30, 2018.
1h
On the hourly chart, the quotes completed closing below the correction level of 50.0% - 1.2935. As a result, the process of falling off the pair continues in the direction of the next Fibo level of 61.8% - 1.2878. Rebound of the pair from the correction level of 61.8% will allow traders to expect a reversal in favor of the British currency and some growth in the direction of the correction level of 50.0%. Fixing quotations under the Fibo level of 61.8% will increase the chances for the continuation of the fall in the direction of the correctional level 76.4% - 1.2809.
The Fibo grid is built on extremes from October 30, 2018, and November 7, 2018.
Recommendations to traders:
You can make purchases of the GBP / USD currency pair with a target of 1.2935 and a Stop Loss order under the correction level of 61.8% if the pair bounces off the 1.2878 level (hourly chart).
The currency pair GBP / USD can be sold with targets of 1.2878 and 1.2809 and a Stop Loss order above the 61.8% level, as the pair closed below the correction level of 1.2935 (hourly chart).
The material has been provided by InstaForex Company - www.instaforex.com