EUR/USD and GBP/USD: Technical analysis for November 6
November 6, 2023 8:25 am
EUR/USD
Higher Timeframes
At the end of last week, the bulls continued their advance and conquered new highs. They even managed to close the previous working week outside the Ichimoku cloud. However, with the opening of today’s trading, the upper boundary of the cloud changed its position and still affects the situation. As a result, the current situation is once again tied to the overcoming of weekly resistances, which have now converged in the area of 1.0733 – 1.0766 (Senkou Span A + Fibonacci Kijun).
The next task for the bullish players will be to exit the daily cloud and test the reinforced area at 1.0862 – 1.0868 (monthly levels + weekly medium-term trend). Failure by the bulls and a return to bearish sentiment will shift the market’s focus to nearby supports, which can currently be noted at 1.0665 – 1.0633 (daily levels) and the level of 1.0614-09 (weekly short-term trend + monthly medium-term trend).
H4 – H1
On the lower timeframes, the main advantage currently belongs to the bullish players. Today, their upward targets within the day await the market at 1.0781 – 1.0830 – 1.0913 (resistances of the classic pivot points). The key levels of the lower timeframes are currently forming a wide zone for a corrective decline, ranging from 1.0698 (central pivot point) to 1.0617 (weekly long-term trend), with intermediate support potentially provided by S1 (1.0649). A secure consolidation below these key levels and a reversal of the moving average will influence the current balance of power on the lower timeframes.
***
GBP/USD
Higher Timeframes
To exit the zone of uncertainty, the bullish players took a bold and decisive step at the end of last week. They showed activity, which allowed them to push the market beyond the nearest weekly resistances, reformatting these levels from resistances to supports. In the case of a decline, weekly supports in the area of 1.2268 – 1.2292 (upper boundary of the cloud + short-term trend) can now play an important role. In the current situation, the continuation of the upward trend will aim to test the next cluster of resistances in the area of 1.2458 – 1.2472 – 1.2506 (monthly levels + weekly Fibonacci Kijun).
H4 – H1
The main advantage on the lower timeframes is currently on the bulls’ side. The potential boundaries set within the day by the classic pivot points, thanks to Friday’s activity, have been significantly expanded today. Therefore, the upward targets can now be noted at 1.2451 – 1.2522 – 1.2656 (resistances of the classic pivot points). In the event of a change in sentiment and a development of a decline, the following supports may come into play one by one: 1.2317 (central pivot point) – 1.2246 (S1) – 1.2190 (weekly long-term trend).
EUR/USD
Higher Timeframes
At the end of last week, the bulls continued their advance and conquered new highs. They even managed to close the previous working week outside the Ichimoku cloud. However, with the opening of today’s trading, the upper boundary of the cloud changed its position and still affects the situation. As a result, the current situation is once again tied to the overcoming of weekly resistances, which have now converged in the area of 1.0733 – 1.0766 (Senkou Span A + Fibonacci Kijun).
The next task for the bullish players will be to exit the daily cloud and test the reinforced area at 1.0862 – 1.0868 (monthly levels + weekly medium-term trend). Failure by the bulls and a return to bearish sentiment will shift the market’s focus to nearby supports, which can currently be noted at 1.0665 – 1.0633 (daily levels) and the level of 1.0614-09 (weekly short-term trend + monthly medium-term trend).
H4 – H1
On the lower timeframes, the main advantage currently belongs to the bullish players. Today, their upward targets within the day await the market at 1.0781 – 1.0830 – 1.0913 (resistances of the classic pivot points). The key levels of the lower timeframes are currently forming a wide zone for a corrective decline, ranging from 1.0698 (central pivot point) to 1.0617 (weekly long-term trend), with intermediate support potentially provided by S1 (1.0649). A secure consolidation below these key levels and a reversal of the moving average will influence the current balance of power on the lower timeframes.
***
GBP/USD
Higher Timeframes
To exit the zone of uncertainty, the bullish players took a bold and decisive step at the end of last week. They showed activity, which allowed them to push the market beyond the nearest weekly resistances, reformatting these levels from resistances to supports. In the case of a decline, weekly supports in the area of 1.2268 – 1.2292 (upper boundary of the cloud + short-term trend) can now play an important role. In the current situation, the continuation of the upward trend will aim to test the next cluster of resistances in the area of 1.2458 – 1.2472 – 1.2506 (monthly levels + weekly Fibonacci Kijun).
H4 – H1
The main advantage on the lower timeframes is currently on the bulls’ side. The potential boundaries set within the day by the classic pivot points, thanks to Friday’s activity, have been significantly expanded today. Therefore, the upward targets can now be noted at 1.2451 – 1.2522 – 1.2656 (resistances of the classic pivot points). In the event of a change in sentiment and a development of a decline, the following supports may come into play one by one: 1.2317 (central pivot point) – 1.2246 (S1) – 1.2190 (weekly long-term trend).
***
The technical analysis of the situation uses:
Higher timeframes – Ichimoku Kinko Hyo (9.26.52) + Fibo Kijun levels
Lower timeframes – H1 – Pivot Points (classic) + Moving Average 120 (weekly long-term trend)
The material has been provided by InstaForex Company – www.instaforex.com
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