EUR/USD
Larger timeframes
Euro bears dragged EUR/USD down. So, the instrument encountered 1.0554, support of the weekly Ichimoku cloud. It is the second level of a vast support area, embracing a few levels defined earlier. The cluster of several strong landmarks at once (1.0578 – 1.0554 – 1.0500 – 1.0447), though located non-compactly, and at some distance, undermines the significance of each of them separately. Therefore, in such situations, it can be initially difficult to determine which support will have the maximum impact on the current movement. With priorities and sentiment changing, the immediate resistance is now seen at 1.0646, the daily short-term trend.
H4 – H1
Short sellers maintain a major advantage in lower time frames. Today, the landmarks for a further intraday decline can be determined at 1.0553 – 1.0535 – 1.0506, support for classic pivot levels. Key levels in the lower timeframes now form the most important levels in case a corrective rise follows. They are located at 1.0582 (central pivot level of the day) and 1.0630 (weekly long-term trend). Consolidation above and a reversal of the moving average can change the current balance of forces in favor of the euro bulls, opening up new prospects for them.
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GBP/USD
Larger timeframes
The bears entered into the zone of the one-month medium-term trend (1.2159). The slide was quite long, and monthly support can now serve as a good basis for slackening and stopping the decline. If short sellers pass this line and continue their active descent, then the next support is currently seen at 1.1897 (the upper border of the weekly Ichimoku cloud). If the bulls steal the show, then the nearest resistance in the current conditions will be the daily short-term trend (1.2290).
H4 – H1
The main advantage on lower timeframes still belongs to short sellers. There is a downward trend, the reference points of which within the day represent the support levels of the classic pivot levels (1.2130 – 1.2106 – 1.2064). When an upward correction emerges and develops, the resistance of the classic pivot levels (1.2172 – 1.2196 – 1.2238) will be important. When GBP/USD reaches the key level, the weekly long-term trend (1.2248), the question will arise about confirming the advantages or changing the current balance of trading forces.
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This technical analysis is based on the following ideas:
Larger timeframes - Ichimoku Kinko Hyo (9.26.52) + Fibo Kijun levels
H1 – classic pivot points + 120-period Moving Average (weekly long-term trendline)