4h
The GBP / USD currency pair on the 4-hour chart, after the rebound from the correction level of 76.4% - 1.2812 and the formation of a bearish divergence at the CCI indicator, resumed the process of falling and completed closing below the Fibo level of 100.0% - 1.2662. As a result, the fall in quotations can be continued in the direction of the next correction level of 127.2% - 1.2491. Releasing the pair on December 11 from this level will allow us to expect a reversal in favor of the pound sterling and some growth in the direction of the correctional level of 100.0%. Fixing quotes below the Fibe level of 127.2% will work in favor of continuing to fall.
The Fibo grid was built on extremes from August 15, 2018, and September 20, 2018.
1h
On the hourly chart, the currency pair performed a significant drop, but this night it completed closing above the correction level of 127.2% - 1.2567, which allows traders to expect some growth in the direction of the correctional level of 100.0% - 1.2696. However, the emerging bearish divergence in the CCI indicator also allows you to count on the resumption of a fall in the direction of the Fibo level of 161.8% - 1.2400. Closing the pair under the correction level of 127.2% can be interpreted as a reversal in favor of the US currency.
The Fib net 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 1.2696 and a Stop Loss order under the correction level of 127.2%, as the pair completed closing above the level of 1.2567 (hourly chart) and hold the orders until a bearish divergence is formed.
Sales of the GBP / USD currency pair can be carried out with a target of 1.2400 and a Stop Loss order above the level of 127.2% if the pair closes below the Fibo level of 1.2567 (hourly chart), especially with the formation of a bearish divergence.
