EUR/USD and GBP/USD: Technical analysis for October 13
October 13, 2023 10:20 am
EUR/USD
Higher Timeframes
The lack of effectiveness in dealing with the resistance of the daily Ichimoku cross (1.0609 – 1.0647) led to the formation of a rebound. After closing the previous day under the daily short-term trend (1.0527), the bears returned the situation to the weekly cloud.
Today marks the end of the workweek. The uncertainty or bearish sentiment of the weekly candle negates all the successes and previous achievements of the bullish players. To open up new prospects for the bearish players, it is important to overcome the monthly Fibonacci Kijun (1.0447) and restore the downward trend (1.0449).
H4 – H1
The bullish players failed to reach their target levels for breaking through the H4 cloud, most likely due to the strength of the daily resistances. A sudden and decisive shift in sentiment has led to a shift in favor of the bearish players on the lower timeframes. With the strengthening of bearish sentiments and consolidation within the bearish zone relative to the H4 Ichimoku cloud (1.0534), a new H4 target will be formed. In addition, the support levels of the classic pivot points (1.0490 – 1.0451 – 1.0376) can serve as bearish intraday targets. The recovery of positions by the bullish players and a rise above the key levels on the lower timeframes, which are currently at 1.0565 – 1.0579 (central pivot point of the day + weekly long-term trend), are capable of once again altering the current balance of power and influencing the prospects for further movement.
***
GBP/USD
Higher timeframes
The resistance of the final levels of the death cross of the daily Ichimoku cloud (1.2291 – 1.2351) led to a rebound, with the pair closing below the daily short-term trend (1.2186). Confirmation and development of the rebound may serve as a basis for ending the current correction and the recovery of the downward trend (1.2036). The upper boundary of the weekly cloud (1.1990) will become the next bearish target.
H4 – H1
Yesterday, the bears managed to sharply change the market sentiment and gain the upper hand. Currently, the opposition is trying to regain their positions, and as a result, they are approaching the resistance levels of key levels, which have united their efforts today within a relatively narrow range of 1.2224–44 (central pivot point + weekly long-term trend). In case of strengthening of bullish sentiment, the resistance levels of the classic pivot points (1.2277 – 1.2384 – 1.2437) will serve as intraday targets. If bearish activity returns, the support levels of the classic pivot points (1.2117 – 1.2064 – 1.1957) will come into play.
EUR/USD
Higher Timeframes
The lack of effectiveness in dealing with the resistance of the daily Ichimoku cross (1.0609 – 1.0647) led to the formation of a rebound. After closing the previous day under the daily short-term trend (1.0527), the bears returned the situation to the weekly cloud.
Today marks the end of the workweek. The uncertainty or bearish sentiment of the weekly candle negates all the successes and previous achievements of the bullish players. To open up new prospects for the bearish players, it is important to overcome the monthly Fibonacci Kijun (1.0447) and restore the downward trend (1.0449).
H4 – H1
The bullish players failed to reach their target levels for breaking through the H4 cloud, most likely due to the strength of the daily resistances. A sudden and decisive shift in sentiment has led to a shift in favor of the bearish players on the lower timeframes. With the strengthening of bearish sentiments and consolidation within the bearish zone relative to the H4 Ichimoku cloud (1.0534), a new H4 target will be formed. In addition, the support levels of the classic pivot points (1.0490 – 1.0451 – 1.0376) can serve as bearish intraday targets. The recovery of positions by the bullish players and a rise above the key levels on the lower timeframes, which are currently at 1.0565 – 1.0579 (central pivot point of the day + weekly long-term trend), are capable of once again altering the current balance of power and influencing the prospects for further movement.
***
GBP/USD
Higher timeframes
The resistance of the final levels of the death cross of the daily Ichimoku cloud (1.2291 – 1.2351) led to a rebound, with the pair closing below the daily short-term trend (1.2186). Confirmation and development of the rebound may serve as a basis for ending the current correction and the recovery of the downward trend (1.2036). The upper boundary of the weekly cloud (1.1990) will become the next bearish target.
H4 – H1
Yesterday, the bears managed to sharply change the market sentiment and gain the upper hand. Currently, the opposition is trying to regain their positions, and as a result, they are approaching the resistance levels of key levels, which have united their efforts today within a relatively narrow range of 1.2224–44 (central pivot point + weekly long-term trend). In case of strengthening of bullish sentiment, the resistance levels of the classic pivot points (1.2277 – 1.2384 – 1.2437) will serve as intraday targets. If bearish activity returns, the support levels of the classic pivot points (1.2117 – 1.2064 – 1.1957) will come into play.
***
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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