4h
The GBP / USD currency pair on the 4-hour chart reversed in favor of the British currency after the formation of the bullish divergence at the CCI indicator and started the process of growth in the direction of the Fibo level of 100.0% - 1.2662. Reversing quotes from the correction level of 100.0% will allow traders to expect a reversal in favor of the US currency and a resumption of decline in the direction of the correction level of 127.2% - 1.2491. Fixing the pair above the Fibo level of 100.0% will work in favor of continuing growth in the direction of the correction level of 76.4% - 1.2812.
The Fibo grid was built on extremes from August 15, 2018, and September 20, 2018.
1h
On the hourly chart, the pair reversed in favor of the currency of England and fixed above the correction level of 127.2% - 1.2566. As a result, today the growth of quotations can be continued in the direction of the next correction level of 100.0% - 1.2696. The ripening divergences on December 17 are not seen in any indicator. Fixing the pair below the Fibe level of 127.2% will work in favor of the US dollar and resuming the fall in the direction of the correction level of 161.8% - 1.2400.
The Fib net 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 1.2662 and a Stop Loss order below the level of 127.2%, as the pair completed closing above the correction level of 1.2566 (hourly chart)
Sales of the GBP / USD currency pair can be carried out with the target of 1.2400 and a Stop Loss order above the level of 127.2% if the pair closes below the level of 1.2566 (hourly chart).
The material has been provided by InstaForex Company - www.instaforex.com