On the 4-hour chart, the GBP / USD currency pair rose to the correction level of 76.4% – 1.3157. Reversing the pair’s quotes from this level allows traders to expect a reversal in favor of the US currency and a slight fall towards the correctional level of 61.8% – 1.3066. There are no maturing divergences on the current chart. Fixing the pair above the Fibo level of 76.4% will work in favor of resuming growth in the direction of the next correction level of 100.0% – 1.3397.
The Fib net is built on extremes from September 20, 2018, and October 30, 2018.
On the hourly chart, the bearish divergence of the CCI indicator allowed the pair to reverse in favor of the American currency and return to the Fibo level of 76.4% – 1.3125. The end of the pair on November 8 from the correction level of 76.4% will allow us to count on a turn in favor of the British currency and the resumption of growth in the direction of the correction level of 100.0% – 1.3257. Fixing quotations under the Fibo level of 76.4% will increase the chances of the pair to further fall in the direction of the correction level of 61.8% – 1.3044.
The Fibo grid is built on extremums from October 12, 2018, and October 30, 2018.
Recommendations to traders:
New purchases of the GBP / USD currency pair can be made with the target of 1.3357 and a Stop Loss order under the correction level of 76.4% if the pair bounces off the level of 1.3125 (hourly chart).
Selling of the GBP / USD currency pair will be possible with a target of 1.3044 and a Stop Loss order above the level of 76.4% if the pair closes below the correction level of 1.3125 (hourly chart).
The material has been provided by InstaForex Company – www.instaforex.com