FX.co ★ Technical analysis recommendations on EUR/USD and GBP/USD for October 6, 2022

EUR/USD

Higher timeframes

Testing the 1.0000 psychological level led to a slowdown and a daily rebound from the level. As a result, the outcome of the interaction is now crucial. If the pair does not give up attempts to overcome the resistances 0.9952 - 1.0000 - 1.0071 (weekly short-term trend + final level of the daily Ichimoku cross + psychological level + weekly level + lower limit of the daily cloud), then consolidation above will allow us to consider new prospects. If the rebound is confirmed and develops, then everything can turn into a retest of the passed levels and bearish activity will return to the market.

H4 – H1

On the lower timeframes, the pair continues to remain in the consolidation zone, but the main advantage now remains on the side of the bulls. To change the situation, bears need to break through and reverse the 0.9851 moving average (weekly long-term trend). Additional downward targets today can be noted at 0.9814 - 0.9745 - 0.9654 (support of the classic pivot points). The upward targets within the day today are located at 0.9974 - 1.0065 - 1.0134 (classic pivot points) and 1.0017 - 1.0070 (target for the breakdown of the Ichimoku cloud on H4).

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GBP/USD

Higher timeframes

The meeting with the resistance zone 1.1317 - 1.1411 - 1.1421 (weekly levels + historical level) turned into a slowdown and a suspension of the rise. A breakdown of this zone will open the way to the next upward targets, the closest of which can be noted at 1.1751 (weekly medium-term trend) and 1.1842 (monthly level + daily cloud). The development of the rebound will return the pair to the zone of action of the levels of the daily Ichimoku cross, which act as support in the current situation (1.1209 - 1.1046 - 1.0925).

H4 – H1

At the moment, the pair is in the correction zone. The main reference point for the correction now is the support of the weekly long-term trend (1.1253). Consolidation below the moving average and its reversal can change the current balance of power in the lower timeframes. The next reference points for the continuation of the decline within the day today are 1.1202 - 1.1079 - 1.0933 (support of the classic pivot points). If the current correction is completed, then the relevance will return to upward benchmarks. Today they can be noted at 1.1588 (100% completion of the H4 target) and 1.1617 – 1.1740 (classic pivot points).

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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)