FX.co ★ EUR/USD and GBP/USD: Technical analysis for November 7

EUR/USD

Higher Timeframes

Yesterday marked a slowdown in a small range within the influence zone of the weekly resistances 1.0733 - 1.0766. The positioning of key reference points remains unchanged. As a result, the conclusions and expectations voiced earlier also remain relevant. In the course of the movement, the boundaries of the daily cloud will be the first to meet the market today, both in the case of further decline (1.0659 lower cloud boundary) and in the event of continued ascent (1.0814 upper cloud boundary) after breaking through the weekly levels (1.0733-66).

H4 - H1

On the lower timeframes, the pair is currently in a downward correction zone, while bullish players maintain an advantage. A breakout of the weekly long-term trend, currently located at 1.0642, and a change in its slope will help influence the situation. The classic pivot points, which are important reference points during intraday movement, are forming a slight range today due to the lack of scalability in yesterday's movement. The support levels can be noted at 1.0704 - 1.0689 - 1.0663, while resistance levels are at 1.0730 - 1.0745 - 1.0771 - 1.0786.

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GBP/USD

Higher Timeframes

Bulls could not reach the accumulation of resistances in the range of 1.2458 - 1.2472 - 1.2506 (monthly levels + weekly Fibonacci Kijun) yesterday, giving way to bearish sentiment. Bears are now ready to leave the daily cloud (1.2332) and continue the decline towards the weekly supports at 1.2268 - 1.2292 (upper cloud boundary + short-term trend). The breakdown of weekly supports can significantly strengthen bearish positions in the market. The next task in this direction will be the elimination of the daily Ichimoku cross (1.2248 - 1.2231 - 1.2185).

H4 - H1

On the lower timeframes, despite the decline, the main advantage continues to favor the bulls. If the bullish players decide to restore their positions, they will have to act within the day by passing through the resistances of the classic pivot points (1.2368 - 1.2398 - 1.2458 - 1.2488). If the bears continue the decline that started yesterday, they will be interested in the support levels of the classic pivot points (1.2308 - 1.2278 - 1.2218) and the weekly long-term trend (1.2232). The breakdown and reversal of the weekly trend can significantly change the current balance of power on the lower timeframes.

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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)