Analysis of GBP / USD Divergences for November 8. Pound sterling took time out

4h

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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.

1h

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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