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Divergence Analysis GBP / USD on July 11

4h

gbp4h.png

The price decline continues as shown in the 4-hour chart towards the direction of the correction level of 100.0% - 1.2707, after the formation of the bearish divergence.

Bearish divergence in the CCI indicator: the final peak of quotations drove lower than the previous one which does not correspond to the final highs of the indicator. Crossing over the last peak of the divergence enables us to rely on the resumption of the growth process through the direction of the corrective level of 161.8% - 1.3076. The Fibonacci level of 100.0% will work in favor of the British currency.

Daily

gbpdaily.png

In the 24-hour chart, the formation of the bearish divergence is followed by the downward movement towards the correction level of Fibo 200.0% - 1.2653. Bearish divergence in the CCI indicator: the last peak of price appeared to be slightly lower than the previous one, and on the other hand, the final peak of the indicator is higher. On July 11 there are no new emerging divergences for any indicator. Passing through the last peak of the divergence will work in favor of the British pound and resume growth towards the correction level of 161.8% - 1.3105.

The material has been provided by InstaForex Company - www.instaforex.com