EUR/USD
Higher time frames
Yesterday, the pair was trading under bearish pressure but failed to retest the nearest low. EUR/USD is still holding in the consolidation channel. The main goal for the bulls today is to break above the 1.0758 area (weekly short-term trend) while bears will need to overcome the monthly support level of 1.0611 and settle inside the daily Ichimoku Cloud.
H4 – H1
The support of 1.0662 on the H4 chart was strong enough to make bears retreat. At the moment, the price is testing key levels on lower time frames found at 1.0698 – 1.0716 (central pivot level + weekly long-term trend). Control of the key levels will show who is in charge of the market. Additional intraday targets are found at the resistance of the standard pivot levels of 10735 – 10781 – 10818 and the support of 1.0652 – 1.0615 – 1.0569.
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GBP/USD
Higher time frames
Yesterday bears confirmed their direction and the long upper shadow of yesterday's candlestick found on the daily chart. Yet, they couldn't break below the daily correction channel at 1.1960. A firm hold below the low of 1.1960 will allow the pair to move lower to the next downward targets located at the support of 1.1842 – 1.1795 (monthly level + lower boundary of the daily Ichimoku Cloud. A failure to move there will bring the pair back to a wide support area of 1.2083 – 1.2115 – 1.2144 – 1.2203 – 1.2261 formed by the daily Ichimoku Cross and Cloud and intensified by the weekly short-term trend.
H4 – H1
After testing the key psychological level of 1.2000, bears had to take a break. A breakout of this level will make other targets on lower time frames relevant again. Thus, the next target will be the support area formed by standard pivot levels of 1.1952 – 1.1874 – 1.1760. Consolidation above the key levels of 1.2066 – 1.2105 (central pivot level + weekly long-term trend) will change the market bias to bullish. In this case, the upward targets will be found at 1.2144 – 1.2258 – 1.2336 (standard pivot levels).
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Technical analysis is based on:
Higher time frames – Ichimoku Kinko Hyo (9.26.52) + Fibo Kijun levels
Lower time frames – H1: Pivot Points (standard) + 120-day Moving Average (weekly long-term trend)