FX.co ★ Technical analysis recommendations for EUR/USD and GBP/USD on April 23

EUR/USD

There is a struggle in the borders of 1.2064 (weekly level) - 1.2092 (upper border of the daily cloud). The week will be closed today, so the result is important. It will be possible to talk about further bullish prospects in case of breaking through the range of 1.2064-92 and consolidating above it. Currently, the area of 1.1976 (weekly cross + monthly short-term trend + daily Tenkan + lower border of the daily cloud) serves as the nearest and most significant support.

In the smaller time frames, today's key levels set at 1.2026-22 (central pivot level + weekly long-term trend) are now working as support. At the moment, they are trying to push the bulls to reach new results and peaks. The resistances of the classic pivot levels can be noted at 1.2058 - 1.2102 - 1.2134. In addition, the maximum extremum of 1.2080 is important, which allows the upward trend to be restored. In the event that the key levels (1.2026-22) in H1 chart are broken, the current balance of forces will change and return the relevance to the support levels of 1.1982 - 1.1950 - 1.1906.

GBP/USD

The pound approached the close of the week with the prospect of forming a rebound from the tested resistance levels located at 1.3955 (weekly short-term trend + upper border of the daily cloud) - 1.4002 (upper border of the monthly cloud). Closing the current week with a long upper shadow can determine opportunities and priorities for the next week. The main support in this case is provided by the area of 1.3839-45 (a cluster of daily levels), while further support can be given by 1.3798-1.3710.

Yesterday, the bears managed to reach key levels in the smaller time frames. Currently, they are trying to retest the overcome levels. If bullish traders successfully regain the zone of 1.3869 - 1.3906 (central pivot level + weekly long-term trend) in the near future, then consolidation may form or the resistances (1.3955 - 1.4002) in the bigger time frames will be tested. On the contrary, if bearish traders retest and update the low (1.3823), thereby breaking through the support in the higher period (1.3839-45), then it is very likely that the downward movement will continue with new strength.

***

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.