4h

The GBP / USD currency pair on the 4-hour chart continues to trade within the sideways range indicated in the illustration by the blue rectangle. Reaching the upper region of this range, the quotes made a U-turn in favor of the US currency and began to fall in the direction of the lower region of this range. The correction level of 100.0% now has almost no value in terms of rebound / breakdown. Going beyond the blue area will allow traders to rely on the resumption of the trend movement.

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

1h

On the hourly chart, the quotes of the pair once again made a return to the correction level of 100.0% - 1.2696 and rebound from it with a reversal in favor of the American dollar. Thus, on December 31, the process of falling quotations can be continued in the direction of the correctional level of 127.2% - 1.2566. The maturing divergences today are not observed, and the closure of the pair above the Fibo level of 100.0% will make it possible to expect a resumption of growth in the direction of the correction level of 76.4% - 1.2809.

The Fib net 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 the target of 1.2809 and a Stop Loss order below the 100.0% level if the pair closes above the Fibo level of 1.2696 (hourly chart).

Sales of the GBP / USD currency pair can be carried out now with the target of 1.2620 (previous local lows) and a Stop Loss order above the 100.0% level, since the pair has completed the rebound from the level of 1.2696 (hourly chart).