FX.co ★ EUR/USD and GBP/USD: Technical analysis for October 25

EUR/USD

Higher Timeframes

Testing the attraction and influence zone of the weekly short-term trend (1.0697) resulted in a significant response from the bears. They managed to nullify all the opponent's achievements from the day before and bring the pair back to the support zone of the daily cross 1.0595-93 (Tenkan + Kijun), which is now situated within the weekly cloud, with its upper boundary currently at 1.0610. The final two working days of the week will determine the outcome that will be recorded on the weekly timeframe.

H4 – H1

On the lower timeframes, the result of the decline is a new extended interaction with the key level—the weekly long-term trend (1.0592). Currently, the market is deciding which development scenario to choose. A break of the trend will favor the bears, with the support levels of the classic pivot points (1.0551 – 1.0512 – 1.0440) serving as reference points. A rebound and subsequent attempts by the bulls will lead to the market testing and possibly surpassing resistance at the classic pivot points (1.0623 – 1.0662 – 1.0734 – 1.0773).

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GBP/USD

Higher Timeframes

The resistance of the daily death cross (final level 1.2275) withstood the test and brought the pair back to the monthly medium-term trend (1.2135). In the current situation, the pound is likely awaiting another stage of consolidation and uncertainty. If the market manages to break the support at 1.2135, the next significant reference point will be the upper boundary of the weekly Ichimoku cloud (1.2027).

H4 – H1

At the moment, on the lower timeframes, there is another confrontation and a battle for the weekly long-term trend (1.2168). Possession of this key level determines the primary advantage for one side or the other. Trading above this level will contribute to strengthening bullish sentiments, with resistance levels of the classic pivot points (1.2198 – 1.2245 – 1.2333 – 1.2380) serving as intraday reference points. Trading below the weekly long-term trend will stimulate bearish sentiments, and in this case, bearish reference points can be marked at 1.2110 – 1.2063 – 1.1975 (support of the classic pivot points of the day).

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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)