FX.co ★ EUR/USD and GBP/USD: Technical analysis for December 11

EUR/USD

Higher Timeframes

Bears executed a sufficiently productive decrease and tested the weekly supports at 1.0762–65 last week. To maintain the momentum, it is now important to confirm the elimination of the daily death cross and overcome the weekly supports. The next downward targets, in this case, will be the daily cloud (1.0697 – 1.0620), reinforced slightly below the monthly medium-term trend (1.0577). Changing priorities and restoring bullish positions will primarily shift attention on resistance concentrations—the daily Ichimoku cross (1.0795 – 1.0837 – 1.0871 – 1.0880) and the intersections of weekly and monthly levels 1.0823 – 1.0863.

H4 – H1

On lower timeframes, bears maintain their advantage. They fully worked out the downward target on the breakdown of the H4 cloud, continuing the decline. A corrective rise is now observed, testing the central pivot point of the day (1.0763). The most significant event will be overcoming the resistance of the weekly long-term trend (1.0798). The breakout and reversal of the moving average can change the current balance of power. Additional intraday targets today may be the resistances (1.0840 – 1.0878) and supports (1.0724 – 1.0686 – 1.0647) of classic pivot points.

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GBP/USD

Higher timeframes

Last week saw a rebound from the final level of the weekly death cross (1.2719). Confirmation and development of this movement will lead the pair to test a wide zone that combines many significant levels for this segment. Here, the final levels of the daily cross (1.2458 – 1.2395), the upper boundary of the daily cloud (1.2390), and weekly supports (1.2458 – 1.2451 – 1.2400) are collected. The current support is provided by the daily Fibonacci Kijun (1.2523). In the case of bullish activity, the pound expects interaction with the range 1.2588 – 1.2616 (daily short-term trend + monthly short-term trend + weekly medium-term trend).

H4 – H1

Bears have the main advantage on the lower timeframes, as the pair trades in the bearish zone relative to the weekly long-term trend (1.2593). Nevertheless, at the moment, the emergence and development of a corrective rise are observed. The breakout and reversal of the moving average can change the current balance of power, with intraday bullish targets at 1.2647 (R2) and 1.2695 (R3). In the case of the development of a downward trend, attention will be on the supports of classic pivot points (1.2497 – 1.2449 – 1.2398).

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The technical analysis of the situation uses:

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

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