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Analysis of GBP / USD Divergences for November 6. The pound continues to regain losses

4h

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On the 4-hour chart, the GBP / USD currency pair resumed the growth process to a correction level of 61.8% - 1.3066. The end of the pair on November 6 from the Fibo level of 61.8% will allow traders to expect a reversal in favor of the US dollar and a slight drop in the direction of the correction level of 50.0% - 1.2995. There are no emerging divergences today. Fixing the pair above the Fibo level 61.8% will increase the likelihood of continued growth in the direction of the next correctional level of 76.4% - 1.3157.

The Fib net is built on extremes from September 20, 2018, and October 30, 2018.

1h

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On the hourly chart, the pair rebounded from the correctional level of 50.0% - 1.2978 and resumed growth, entrenched above the Fibo level of 61.8% - 1.3044. Thus, the growth process can be continued in the direction of the next correction level of 76.4% - 1.3125. There are no ripening divergences now. Fixing quotations under the Fibo level of 61.8% can be interpreted as a reversal in favor of the US currency and to expect a slight decline in the direction of the correctional level of 50.0%.

The Fibo grid was built on extremums from October 12, 2018, and October 30, 2018.

Recommendations to traders:

Purchases of the GBP / USD currency pair can be carried out now with the target of 1.3125 and a Stop Loss order under the correction level of 61.8%, since the pair completed closing above the level of 1.3044 (hourly chart).

Selling of the GBP / USD currency pair will be possible with a target of 1.2978 and a Stop Loss order above the 61.8% level if the pair closes below the correction level 1.3044 (hourly chart).

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