FX.co ★ EUR/USD and GBP/USD: Technical analysis for October 9

EUR/USD

Higher Timeframes

The past week ended with a rejection from the weekly cloud, but with the opening of trading for the new workweek, a downward gap was filled, letting the pair again to trade within the weekly cloud. The nearest downward reference points remain unchanged today: 1.0534 – 1.0500 – 1.0447 (daily short-term trend + daily target + final level of the monthly death cross). Breaking through the supports and a recovery of the downward trend would allow for consideration of new perspectives. Updating the previous week's high (1.0601) and entering the bullish zone relative to the weekly cloud (1.0594) will shift attention to new upward reference points. The first task in this direction will be to eliminate the death cross of the daily Ichimoku cloud (1.0629 – 1.0671).

H4 – H1

At present, the main advantage belongs to the bulls. Their intraday reference points are the classic pivot points currently situated at 1.0557 – 1.0630 – 1.0675 – 1.0748. Breaking through and reversing the weekly long-term trend (1.0514) would allow a reassessment of the current balance of power, as the priority may shift in favor of strengthening bearish sentiment through the testing and overcoming of the supports of the classic pivot points (1.0439 – 1.0394).

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GBP/USD

Higher Timeframes

Bulls were able to make a good start in changing the leadership in the movement last week. Further development of the upward correction will allow the bullish players to continue recovering their positions. The immediate task will be the elimination of the daily Ichimoku cross (1.2267 – 1.2338 – 1.2410), reinforced by the weekly short-term trend (1.2418). Returning to bearish activity for new perspectives is only possible after breaking through the supports at 1.2135 – 1.2153 (daily short-term trend + monthly medium-term trend), updating the low (1.2036), and forming the result of interaction upon testing the upper boundary of the weekly cloud (1.1990).

H4 – H1

Even though today's initiative continues to belong to the bears, the main advantage remains on the opponent's side for now. Changing the balance of power will be aided by breaking through and reversing the weekly long-term trend (1.2140). In the event of bearish sentiment developing within the day, supports at 1.2045 (S2) and 1.0984 (S3) may come in handy. When bullish players become active, the relevance will shift to the resistances of the classic pivot points (1.2294 – 1.2355 – 1.2449).

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The technical analysis of the situation uses:

Higher timeframes - Ichimoku Kinko Hyo (9.26.52) + Fibo Kijun levels

Lower timeframes - H1 - Pivot Points (classic) + Moving Average 120 (weekly long-term trend)