Divergences GBP/USD on November 23

Written by Tim T.

On the daily chart the pair rose to the level of correctional Fibo 38.2% - 1.5964. Planned divergence from the CCI and Stochastic: if the last peaks of these indicators are obtained above the previous, while the same peak price will come up earlier, then a bearish divergence.

Daily

 Lights out quotes from the 38.2% correction level will begin to drop in the pair to level Fib 50.0% and may coincide with the formation of divergence. But fixing rate above the 38.2% correction at FIBO will count on continued growth to Fibonacci correctional level of 23.6% - 1.6094. All indicators now allow continued growth of quotations, which raises the possibility of fixing rate 38.2% correctional level, but keep in mind the possible bearish divergence.

4h

Pair formed a bullish divergence in the indicator Stochastic, which made it possible to perform a turn around Fibonacci correctional level of 50.0% - 1.5901, and the pair continues its growth course. Lights out on the course correction level 38.2% - 1.6001 the pair will perform a turn in favor of the U.S. dollar and start falling to the level of 50.0% correct. Securing above Fib 38.2% will rely on the continued growth of quotations in the direction of the next correction level 23.6% - 1.6119. Emerging divergence has not yet been observed. It should be noted that the high position allows Stochastic release quotes from the 38.2% correction level and increases the likelihood of this.

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