FX.co ★ EUR/USD and GBP/USD: Technical Analysis for September 23

EUR/USD

Higher time frames

Recently, we have observed a second attempt at testing the resistance of the monthly Ichimoku cloud. The pair is currently positioned below the upper boundary of the cloud (1.1184). Breaking through this level would provide an opportunity to enter the bullish zone relative to the cloud, opening up new prospects for the buyers. For example, it will be essential to update the highest peak of the previous year (1.1276). A rebound from 1.1184 could again serve as a good basis for a corrective decline. On this path, the market will first encounter the supports of the daily Ichimoku cross, currently located at 1.1126 – 1.1103 – 1.1096 – 1.1079.

H4 – H1

Buyers have the main advantage in the lower time frames, but the resistance of the worked-out target for breaking the H4 cloud (1.1164 – 1.1187) firmly holds back new bullish plans. They need to overcome this target and escape its gravitational pull to continue moving forward. Additional upward targets within the day are the resistances of the classic Pivot levels, which can be noted today at 1.1184 – 1.1206 – 1.1229.

The key levels of the lower time frames currently act as the present supports, located in close proximity to the price chart at 1.1161 (the central pivot level of the day) and 1.1137 (the weekly long-term trend). A breakout and reversal of the trend could shift the primary advantage to the sellers. Subsequently, the classic pivot levels S2 (1.1116) and S3 (1.1094) could serve as additional support.

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GBP/USD

Higher time frames

The bulls sustain their upward movement, striving to consolidate above the psychological level of 1.3300. The next target on the horizon can be noted at 1.3400 for further recovery of bullish positions. A loss of optimism and a shift in priorities will lead to a drop below 1.3300, which will open the path toward the daily Ichimoku golden cross, with levels currently at 1.3185 – 1.3170 – 1.3138 – 1.3090.

H4 – H1

On the lower time frames, the bulls are attempting to consolidate above the target of breaking the H4 cloud, allowing them to sustain the upward movement, focusing on the resistance of the classic pivot levels (1.3349 – 1.3380 – 1.3421). Suppose the bulls fail to maintain the rise after breaking the H4 target. In that case, the opposing side will gain strength in the current consolidation, eventually pushing the market back below the target (1.3308 – 1.3278) and key lower time frame levels 1.3308 – 1.3233 (central Pivot level of the day + weekly long-term trend), opening new possibilities for strengthening bearish sentiment.

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This technical analysis is based on the following ideas:

Larger time frames - Ichimoku Kinko Hyo (9.26.52) + Fibo Kijun levels

H1 – classic pivot points + 120-period Moving Average (weekly long-term trend)