26.11.201212:08 Forex Analysis & Reviews: GBP/USD Analysis for November 26, 2012

Daily

On the daily chart the rate has consolidated above the level of correction 38.2% - 1.5964 of Fibonacci. As a result the pair may continue its growth to the correctional level of 23.6% - 1.6094 of Fibonacci. It is probable that we will observe the divergence of CCI and Stochastic indicators. If the last highs of the indicators are higher than the previous ones and the similar high of the price is not higher than the previous one, then a bearish divergence will be formed. A rebound of the quotes from the level of correction 23.6% enables the pair to start dropping towards the level of Fibonacci 38.2% and may coincide with the divergence formation. All the indicators assume the possibility that the quotes will grow. However, a probable bearish divergence should be taken into account.

4h

The rate has formed a bullish divergence with Stochastic. It enabled the pair to swing towards the British currency and consolidate above the level of correction 38.2% - 1.6001 of Fibonacci. As a result the growth may continue towards the level of correction 23.6% - 1.6119. The rebound from the level of correction 23.6% enables a swing towards the US dollar and the pair may start falling towards the level of correction 38.2%. Consolidation above the level of Fibonacci 23.6% enables the growth of the quotes to continue towards the next level of correction 0.0% - 1.6309. Divergence of CCI is likely to be observed in the short term; the current high is higher than the previous one. On the contrary, Stochastic proves not to be the same. If the last high of Stochastic is lower than the previous one, then a bearish divergence will be formed; it may enable the pair to swing towards the US dollar. It should be noted that the high position of Stochastic allows the pair to turn in favour of the greenback.