EUR/USD

The bulls managed to maintain the predominance of bullish mood at the close of last week after testing the weekly resistance level. The breakdown of the level of 1.1894 will allow us to consider new upward prospects. In this situation, the following important resistance lines can be combined into a fairly wide zone 1.1965 - 1.2010 - 1.2036. A breakdown and reliable consolidation above will break through the weekly dead cross and lead the pair into a bullish zone of relative weekly and daily clouds, while a new upward target – a target for the breakout of the daily cloud. In turn, if the rebound from the encountered resistance (1.1894) develops on Friday, the nearest support can be noted today at 1.1847 (the lower border of the daily cloud) - 1.1818 (daily short-term trend) - 1.1787 (weekly short-term trend).

A downward correction is currently in progress in the smaller time frames. The bears took possession of the central pivot level (1.1884) and managed to achieve the majority support among the analyzed technical indicators. The support level S1 (1.1860) is currently being tested. The next important pivot point for the bears is the area of 1.1840 (weekly long-term trend + S2). The result of interaction with this level will determine the current balance of power in the smaller interval and form new opportunities.

GBP/USD

The bulls had the advantage during the previous week, who closed the week in the attraction and the influence zone of important levels 1.3830 - 1.3848 (the final level of the daily cross + weekly Fibo Kijun + monthly Tenkan). Trading above the levels will maintain and consolidate the bullish gains. In this case, the upward pivot points will be the resistance levels of 1.3910 (upper border of the daily cloud + weekly medium-term trend) - 1.3958 (upper border of the monthly cloud) - 1.3989 (the final border of the weekly dead cross of Ichimoku).

On the contrary, the location and operation below the current zone of attraction (1.3830-48) will allow us to consider bearish pivot points for continuing the decline. The nearest ones are now set at 1.3778 (weekly Tenkan + daily cross + lower limit of the daily cloud) and 1.3737 (the final limit of the daily cross).

The development of a downward correction is observed in the smaller time frames. The bears managed to achieve some advantages – they seized the support of technical indicators and the central pivot level (1.3855). The next most important downward target is now located at 1.3794 (weekly long-term trend). In the area of this support, there is an accumulation of levels of the higher time frames, so a consolidation below can change the current balance of forces not only on the hourly chart. It is important for bulls now to reclaim the level of 1.3855 and update the high (1.3891).

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Ichimoku Kinko Hyo (9.26.52) and Kijun-sen levels in the higher time frames, as well as classic Pivot Points and Moving Average (120) on the H1 chart, are used in the technical analysis of the trading instruments.