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Analysis of the divergence of GBP / USD on November 13th. The level of 1.2840 kept the pound from further falling

4h

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On the 4-hour chart, the GBP / USD currency pair first performed a fall to the correctional level of 23.6% - 1.2837, and then a double rebound from it. As a result, a reversal was made in favor of the British currency and growth began in the direction of the correction level of 38.2% - 1.2925. There is no ripening divergence observed on any indicator on November 13th. Fixing a pair of quotes under the Fibo level of 23.6% will work in favor of the American currency and resuming the fall in the direction of the correction level of 0.0% - 1.2697.

The Fibo grid was built on extremes from September 20, 2018, and October 30, 2018.

1h

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On the hourly chart, quoting quotes from the Fibo level of 50.0% - 1.2935 allowed the pair to resume the process of falling. Now, the pair has once again made a return to the level of correction (61.8% - 1.2878), which passed earlier. Reversing the quotations from the Fibo level of 61.8% will allow traders to again expect a reversal in favor of the US dollar and a resumption of decline in the direction of the correctional level of 76.4% - 1.2809. There is a bearish divergence in the CCI indicator, the formation of which will increase the probability of rebound from the correction level of 61.8%.

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 a target of 1.2935 and a Stop Loss order under the correction level of 61.8% if the pair closes above 1.2878 (hourly chart).

It will be possible to sell a pair of GBP / USD with the target of 1.2809 and a Stop Loss order above the level of 61.8% if the pair bounces off of the correction level of 1.2878 (hourly chart).

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