FX.co ★ EUR/USD and GBP/USD: Technical analysis for December 20

EUR/USD

Higher Timeframes

Yesterday, buyers returned to testing the range of 1.0960 – 1.1004. If this attempt is successful, one can expect 100% fulfillment of the daily target upon breaking through the Ichimoku cloud (1.1065). Failure by the bulls could restart the corrective decline process. In the current situation, the nearest and most reinforced support zone will be the combination of levels from various timeframes in the area of 1.0863, with intermediate support along this path potentially provided by 1.0906.

H4 – H1

Today, the pair continues to trade in the correction zone, with the main advantage still favoring the bulls. At the moment, the central pivot point of the day is being tested (1.0961). Further attention will be directed to the support of the weekly long-term trend (1.0924). A breakthrough and reversal of the movement could be the basis for changing the current balance of power. A rebound and continued ascent will lead to intraday testing of the resistance of classic pivot points (1.1007 – 1.1033 – 1.1079).

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GBP/USD

Higher Timeframes

Since yesterday, the pair has again tested the resistances at 1.2719-38 (the final level of the weekly cross + the first target level). The next important threshold in this direction is currently at 1.2816 (100% achievement of the daily target upon breaking through the Ichimoku cloud). Nevertheless, the bears today are once again trying to take control. By now, they have already returned the situation to the support of the daily short-term trend (1.2646). With further strengthening of bearish sentiments, one can expect testing in the region of 1.2588-83 (daily and weekly medium-term trends + monthly short-term trend).

H4 – H1

At the moment, bears are aiming to break and consolidate below key levels of 1.2708 – 1.2680 (central pivot point + weekly long-term trend). The fulfillment of this task will allow a shift in the current balance of power in favor of the bears. Intraday supports today are located at 1.2657 – 1.2586 – 1.2535 (classic pivot points). In case of a change in priorities, the resistances of the classic pivot points will encounter the market at 1.2779 – 1.2830 – 1.2901.

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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)