EUR/USD
Higher timeframes
Yesterday, the euro updated the previous weekly lows and continued to decline. Earlier it was noted that after overcoming the weekly target for the breakdown of the cloud (1.0806), the next downward reference in this area is the downward target for the breakdown of the monthly cloud (1.0721 – 1.0539). The first target (1.0721) was tested last day. Breakdown and consolidation below opens the way to 100% execution of the monthly target (1.0539).
H4 – H1
The advantage on the lower timeframes belongs to the bears. They made new lows and continue to develop a downward trend. Reference points for the intraday decline are the support of the classic pivot points, which today are located at 1.0667 – 1.0623 – 1.0549. The key levels of the lower halves (1.0741 central pivot point + 1.0802 weekly long-term trend) are currently working as resistance, so the development of an upward correction and a change in the current balance of power is possible only if they are overcome.
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GBP/USD
Higher timeframes
Bears left behind the support of the monthly medium-term trend (1.2830), and with the start of the new working week, they continued to decline. Now the nearest downward reference is the level of 1.2672, which allows 100% to work out the weekly target for the breakdown of the cloud. Further, if the decline continues, then the final level of the monthly Ichimoku cross, which is currently at 1.2495, can be considered as a reference point.
H4 – H1
Bearish sentiment is dominating. Nevertheless, the pair is now in the correction zone in the lower halves. In case of leaving the correction zone and continuing the decline, the reference points within the day will be the support of the classic pivot points (1.2676 – 1.2616 – 1.2534). The consolidation above the central pivot point of the day (1.2758) will serve to develop the correction and further restore the positions of the bulls. Further, with the development of the rise, resistance in the current situation can be provided by R1 (1.2818) and R2 (1.2900). But the most important milestone along the way is the weekly long-term trend, now located at 1.2930. Consolidation above and reversal of the moving average can change the current balance of power.
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In the technical analysis of the situation, the following are used:
higher timeframes – Ichimoku Kinko Hyo (9.26.52) + Fibo Kijun levels
H1 - Pivot Points (classic) + Moving Average 120 (weekly long-term trend)