4h
The GBP / USD pair on the 4-hour chart continues the process of falling in the direction of the correctional level 100.0% - 1.2662. A bullish divergence near the MACD indicator is brewing on November 28. The formation of a bullish divergence will allow traders to expect a reversal in favor of the pound sterling and some growth in the direction of the correction level of 76.4% - 1.2812. The end of the pair quotes from the Fibo level of 100.0% will similarly work in favor of the British currency.
The Fibo grid was built according to extremums from August 15, 2018 and September 20, 2018.
1h
On the hourly chart, the pair closed below the Fibo level 76.4% - 1.2809. Thus, the depreciation of the pair can continue today in the direction of the next level of correction 100.0% - 1.2696. Also, bearish divergence is brewing at the CCI indicator, which allows to expect the continuation of the fall in quotations. However, the bullish divergence (still maturing) on the 4-hour chart has a higher priority. Fixing the rate of the pair below the Fibo level of 100.0% will increase the chances for a further fall in the direction of the next correction level of 127.2% - 1.2568.
The Fibo net is built on extremes from October 30, 2018 and November 7, 2018.
Recommendations to traders:
You can make purchases of the GBP / USD pair with a target of 1.2809 and a Stop Loss order under the correction level of 100.0% if the pair bounces back from the 1.2696 level (hourly chart).
A pair of GBP / USD can be sold now with a target of 1.2696 and a Stop Loss order above the level of 76.4%, as the pair completed closing below the 1.2809 level (hourly chart) and hold the orders until a bullish divergence is formed on the 4-hour chart.
The material has been provided by InstaForex Company - www.instaforex.com