Analysis of GBP / USD Divergences for November 9th. Bullish divergence may return demand for the pound
On the 4-hour chart, the GBP / USD currency pair, after rebounding from the correction level of 76.4% – 1.3157, performed a close below the Fibo level of 61.8% – 1.3066 and continues the process of falling towards the corrective level of 50.0% 1.2997. On November 9, bullish divergence is on the CCI indicator. The education will allow traders to expect a reversal in favor of the British currency and some growth of the pair. Fixing quotes above the Fibo level of 61.8% can be similarly interpreted as a reversal in favor of the pound sterling.
The Fibo grid is built on extremes from September 20, 2018, and October 30, 2018.
On the hourly chart, after the formation of the bearish divergence at the CCI indicator, the pair completed a fall to the Fibo level of 61.8% – 1.3044. The end of the quotations from the correction level of 61.8% will make it possible to expect a turn in favor of the British currency and a slight increase towards the correctional level of 76.4% – 1.3125. The ripening divergences on November 9th are not observed in any indicator. Fixing the pair below the Fibo level of 61.8% will work in favor of a further fall in the direction of the next correction level of 50.0%.
The Fibo grid is built on extremums from October 12, 2018, and October 30, 2018.
Recommendations to traders:
New purchases of the GBP / USD currency pair can be made with the target of 1.3125 and a Stop Loss order under the correction level of 61.8% if the pair bounces off the level of 1.3044 (hourly chart).
Selling of the GBP / USD 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 of 1.3044 (hourly chart).