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Analysis of the GBP / USD Divergences for December 4th. A new level of support for the pound - 1.2700

4h

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The GBP / USD currency pair on the 4-hour chart performed a second rebound from the Fibo level of 76.4% - 1.2812 and resumed its fall in the direction of the correction level of 100.0% - 1.2662. Rejection of quotes from the correction level of 100.0% will allow traders to rely on a turn in favor of the British currency and some growth in the direction of the Fibo level of 76.4%. Fixing the pair below the correction level of 100.0% will work in favor of continuing the fall towards the next Fibo level of 127.2%.

The Fibo grid was built on extremes from August 15, 2018, and September 20, 2018.

1h

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On the hourly chart, after a new rebound from the correction level of 76.4% - 1.2809, the pair completed a fall to the Fibo level of 100.0% - 1.2696 and rebound from it. As a result, a reversal was made in favor of the pound sterling, and the pair began to grow in the direction of the correctional level of 76.4%. The ripening divergences on December 4th are not observed in any indicator. Fixing the course of the pair below the Fibo level of 100.0% will make it possible to expect a continuation of the fall in quotations in the direction of the next correction level of 127.2% - 1.2567.

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

Recommendations to traders:

Purchases of the GBP / USD currency pair can be carried out now with a target of 1.2809 and a Stop Loss order under the correction level of 100.0%, since the pair completed the rebound from the level of 1.2696 (hourly chart).

New sales of the GBP / USD currency pair can be made with the target of 1.2567 and a Stop Loss order above the level of 100.0%, if the closing is completed below the level of 1.2696 (hourly chart).

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