EUR/USD
Yesterday, the pair stayed in the correction zone, remaining within the influence of the historical level of 1.1602, while the initiative shifted towards the strengthening of bearish sentiments. Today, the bears have updated their lows, thereby restoring the downward trend including in the weekly time frame. At the moment, the downward interests are focused on the support zone, which unites the levels of the weekly and monthly timeframes – 1.1538 - 1.1516 - 1.1494 (lower border of the weekly cloud + upper border of the monthly cloud + monthly medium-term trend).
It is clearly seen in the smaller timeframes that the weekly long-term trend has managed to cope with the task. It confronted the bulls twice and both times stopped the development of the previous upward correction. Now, the bears have left the correction zone and are implementing a decline, continuing the downward trend. The support level of 1.1558 (S2) is being tested. The next support of 1.1535 (S3) will serve as a pivot point on the hourly chart.
Today, the key levels here are forming the resistance level of 1.1600 (central pivot level + weekly long-term trend). In the case of consolidation above, the current balance of forces will change, so it would be better to re-evaluate the situation.
GBP/USD
The development of the upward correction yesterday in the daily timeframe did not differ from the previous activity. The nearest corrective point of 1.3661 (weekly short-term trend + daily medium-term trend) remained unbroken. Today, the bears have already updated yesterday's low and are striving to further strengthen their sentiments. The current attraction and influence are now exerted by a zone that combines historical and daily levels in the area of 1.3601 - 1.3571. The minimum extremum (1.3411) serves as a pivot point for bearish traders, allowing them to leave the current correction zone and restore the downward trend on the daily and weekly timeframes.
The bulls managed to achieve some advantages on the H1 chart during the last upward rally. Today, they eliminated the support of the central pivot level (1.3619), approaching another key level – the weekly long-term trend (1.3535). The breakdown of this level will return the advantages of the smaller timeframes to the bearish side. It should be noted that the weekly long-term trend is now joining forces with the final support (1.3527) of the classic pivot levels. This circumstance reinforces the significance of the breakdown of these borders. The next downward pivot point is set at 1.3411 (the minimum extreme).
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Ichimoku Kinko Hyo (9.26.52) and Kijun-sen levels in the higher time frames, as well as classic Pivot Points and Moving Average (120) on the H1 chart, are used in the technical analysis of the trading instruments.