Analysis of the GBP / USD Divergences for November 22. Bullish divergence did not help the pound sterling

4h

On the 4-hour chart, the GBP / USD currency pair did not close above the correction level of 76.4% - 1.2812, after the formation of a bullish divergence, and performed a rebound from it and the passage of the last divergence low. Thus, the fall in quotations can be continued on November 22 in the direction of the correction level of 100.0% - 1.2662. Fixing the rate of the pair from the second attempt above the Fibo level of 76.4% will allow traders to expect some growth in the direction of the correction level of 61.8% - 1.2904.

The Fibo grid was built according to extremums of August 15, 2018, and September 20, 2018

1h

On the hourly chart, the pair rebounded from the Fibo level of 76.4% - 1.2809 with a reversal in favor of the American currency. As a result, the fall in the pair resumed in the direction of the next correction level of 100.0% - 1.2696. There are no maturing divergences on the current chart. Fixing quotations above the Fibo level of 76.4% can be interpreted as a reversal in favor of the British currency and we can expect some growth in the direction of the correction level of 61.8% - 1.2878.

The Fibo grid is built on extremes from October 30, 2018, and November 7, 2018.

Recommendations to traders:

New purchases of the GBP / USD currency pair can be made with a 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).

The currency pair GBP / USD can be sold now with a target of 1.2696 and a Stop Loss order above the level of 76.4% since the pair completed the rebound from the level of 1.2809 (hourly chart).

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