FX.co ★ Recommendations and technical analysis of EUR/USD and GBP/USD on December 8

EUR/USD

Big time frames

The support level of the daily short-term trend located at 1.0442 managed to stop a decline yesterday. As a result, the pair's movement is limited by such levels as 1.0442 (support) and 1.0611 (resistance). If the price goes or settles beyond either limit, we may see a new impulse for the development of a particular trend. In this case, either bulls or bears will gain control over the market. Until the pair hovers within the levels, the market situation will remain uncertain. Thus, we may talk about a consolidation process.

H4 – H1

On smaller time frames, we see that the price is hovering between control levels of 1.0499 and 1.0507(the main pivot point of the day + weekly long-term tendency). If the price rises above this range, a bullish trend is likely to develop. Within the day, the price may climb to such resistance levels as 1.0555, 1.0606, and 1.0662. If the price settles below the key levels, we will see conditions for a bearish trend. In this case, traders should focus on such levels as 1.0448, 1.0392, and 1.0341 (support levels of standard pivot points).

***

GBP/USD

Big time frames

The pair's movement was stopped by the support levels of 1.2121-1.2099 (short-term daily trend + the first target). As a result, now, the pound sterling is fluctuating between the support level of 1.2292 and the resistance level of 1.2303. Consolidation is highly possible. If the price goes beyond the range, traders are likely to focus on the next resistance level of 1.2454 (the lower limit of the monthly cloud) or 1.1886-42 (levels of the daily and monthly Ichimoku Cross).

H4 – H1

On the smaller time frames, we can see uncertainty. The pair has long been trading in the area of 1.2216-1.2181 (the key pivot level of the day + weekly long-term trend). Until the pair remains under the influence of these levels, we will hardly see a clear movement. However, if the price breaks one of the limits, a particular trend will form. Bulls should focus on such levels as 1.2255-1.2309-1.2383 (resistance of standard pivot levels). Bears should pay attention to 1.2127-1.2053-1.1999 (a standard pivot point).

Technical analysis is based on:

Higher time frames – Ichimoku Kinko Hyo (9.26.52) + Fibo Kijun levels

H1 – Pivot Points (standard) + 120-day Moving Average (weekly long-term trend)