FX.co ★ Analysis of GBP / USD Divergences for December 6th. The pound sterling is still inclined to fall

4h

The GBP / USD currency pair on the 4-hour chart performed a rebound from the correction level of 100.0% - 1.2662 and an increase in the direction of the correction level of 76.4% - 1.2812. After that, without generating any signal, it made a U-turn in favor of the American dollar and began the process of returning to the Fibo level of 100.0%. The ripening divergence on December 6 is not observed. Fixing quotes under the correction level of 100.0% will increase the chances of the pair to further fall in the direction of the next Fibo level of 127.2% - 1.2492.

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

1h

On the hourly chart, the currency pair reversed in favor of the US currency around the correction level of 76.4% - 1.2809 and began the process of returning to the Fibo level of 100.0% - 1.2696. Rebound of the pair from the correction level of 100.0% will make it possible to expect a turn in favor of the British currency and some growth towards the level of 76.4%. Fixing quotes below the Fibo level of 100.0% will work in favor of continuing to fall 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:

New purchases of the GBP / USD currency pair can be made with a target of 1.2809 and a Stop Loss order under the correction level of 100.0% if the pair bounces off 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).