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FX.co ★ EUR/USD and GBP/USD technical analysis on February 3, 2023

EUR/USD and GBP/USD technical analysis on February 3, 2023

EUR/USD

EUR/USD and GBP/USD technical analysis on February 3, 2023

Higher time frames

Yesterday's bullish run was stopped by counter activity from the sellers. As a result, the pair returned below the key levels of 1.0930-43 and prepared for a rebound. It is interesting to see how the pair will close the week. The main resistance area is now found at 1.0917 – 1.0930 – 1.0943 (daily short-term trend + upper boundary of the weekly Ichimoku Cloud + monthly medium-term trend). Regarding support, these levels are located at 1.0823 – 1.0758 – 1.0740 (daily cross + weekly short-term trend).

EUR/USD and GBP/USD technical analysis on February 3, 2023

H4 – H1

Yesterday, the pair made a deep drop to the key support level of the weekly long-term trend at 1.0894. In the last few hours, the pair has been trading near this level, displaying uncertainty. A deeper decline in the pair will intensify the bearish bias. On the intraday chart, the standard pivot levels of 1.0852 – 1.0796 – 1.0705 will act as support. If bulls maintain control over the weekly long-term trend, their next targets will be the level of 1.0943 (central pivot level) – 1.0999 (R1) – 1.1033 (the highest extremum point). This may be a difficult task to fulfill as this area is fortified by the levels on higher time frames (1.0930-43).

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GBP/USD

EUR/USD and GBP/USD technical analysis on February 3, 2023

Higher time frames

Yesterday, bears were in full control of the market. They made an attempt to leave the consolidation zone and move below the monthly support of 1.2302. A confirmed and extended downward movement will bring the price to the support levels of 1.2215 – 1.2144 – 1.2072 (daily and weekly Ichimoku levels).

EUR/USD and GBP/USD technical analysis on February 3, 2023

H4 – H1

On lower time frames, the sellers are actively developing a downtrend. They have reached the final target to break through the H4 cloud at 1.2169. Other intraday targets are found at 1.2160 – 1.2099 – 1.1980 (support of standard pivot levels). The key levels that act as resistance on lower time frames are located at 1.2279 (central pivot level) and 1.2332 (weekly long-term trend). Consolidation above this price range will change the market balance.

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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)

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade
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