EUR/USD

Larger timeframes

Since Monday, the euro bulls have been pushing EUR/USD up to 1.0931-43, the important resistance zone which is represented by the upper border of a one-week cloud + a one-month medium-term trend. When testing this area, a Doji candlestick has appeared on the daily chart, but the test result will be visible on larger time frames. When the price surpasses 1.0931-43 and settles above, this will open new prospects. If the price is rejected off resistance, traders will shift focus to downward targets. The support levels of the daily Ichimoku cross such as 1.0829 – 1.0757 – 1.0705 – 1.0653, will act as the first targets.

H4 – H1

On smaller time frames, despite the ongoing decline, the bulls are still setting the tone because the currency pair stays above the one-week long-term trend line which is located today at 1.0835. Upward intraday targets are seen at the resistance of classic pivot levels of 1.0917 – 1.0962 – 1.0998. A breakout of a one-week long-term trend line at 1.0835 and the price reversal will change the balance of trading forces. Extra downward intraday targets could be found at 1.0800 – 1.0755.

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GBP/USD

Larger time frames

GBP/USD is still testing the important area around 1.2457 which coincides with strong upper borders of the Ichimoku cloud of one-month and one-week time frames. The test result will serve as the key to a further price move. A breakout of this area will reinforce the bullish outlook. A rejection off this area will cement the bearish sentiment. The nearest support levels are seen at 1.2266 – 1.2303 (the intraday short-term trend line + one-month medium-term trend line).

H4 – H1

Starting yesterday, GBP/USD has been testing the key levels of smaller time frames. Today, these key levels are seen at 1.2382-53 (the central pivot level + one-week long-term trend line). While the pair is trading above the key levels, the bulls are holding the upper hand. Upward intraday targets are determined today at 1.2440 – 1.2506 – 1.2564 which match the resistance of classic pivot levels. Once the price settles below and reverses its trajectory, the bears will take the lead. Downward targets could be found at support of classic pivot levels such as 1.2316 – 1.2258 – 1.2192.

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This technical analysis is based on the following ideas:

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

H1 – classic pivot points + 120-period Moving Avarage (weekly long-term trendline)