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Analysis of the GBP / USD Divergences for November 16. New pound sterling drop

4h

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On the 4-hour chart, the GBP / USD currency pair made a sharp reversal in favor of the American currency and the closure under the Fibo level of 76.4% - 1.2812 on the new Fibonacci grid. Thus, today the fall in quotations can be continued in the direction of the next correction level of 100.0% - 1.2662. Rebounding quotes from the Fibo level of 100.0% will allow traders to expect a reversal in favor of the British currency and some growth. Closing the pair above the correction level of 76.4% will similarly work in favor of the beginning of the pair's growth.The Fibo grid was built according to extremums of August 15, 2018, and September 20, 2018.1h

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On the hourly chart, the currency pair performed a strong fall and returned to the correctional level of 76.4% - 1.2809. The ripening divergences on November 16 are not observed in any indicator. Rebounding the pair's rate from the Fibo level of 76.4% will make it possible to expect a reversal in favor of the US currency and a resumption of fall in the direction of the correction level of 100.0% - 1.2696. Closing quotations above the Fibo level of 76.4% will make it possible to expect continued growth in the direction of the next correction level of 61.8% - 1.2878.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 the target of 1.2878 and a Stop Loss order under the correction level of 76.4% if the pair closes above 1.2809 (hourly chart).Selling of the currency pair GBP / USD will be possible with the goal of 1.2696 and a Stop Loss order above the level of 76.4% if the pair bounces off the level of 1.2809 (hourly chart).

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