EUR/USD and GBP/USD: Technical analysis for October 23
October 23, 2023 6:21 am
EUR/USD
Higher Timeframes
The pair retained its position within the weekly cloud last week, so the top priority task for the bulls has stayed the same. They need to eliminate the death cross of the daily Ichimoku cloud (1.0627) while entering the bullish zone relative to the weekly cloud (1.0610). After this, they will have new opportunities and targets, such as encountering the weekly short-term trend (1.0697) and the monthly medium-term trend (1.0722).
In the event of bearish activity in the market, the tasks will be focused on re-establishing a downward movement (1.0449) and overcoming the final support of the monthly golden cross (1.0447), after which the market will interact with the lower boundary of the bullish weekly Ichimoku cloud (1.0317).
H4 – H1
There has been no clear direction on the lower timeframes for a while, and uncertainty prevails. Still, the market maintains its position above the weekly long-term trend (1.0563), giving some advantage to the bullish players. The bullish targets within the day today are at 1.0610 – 1.0626 – 1.0648 (resistance of the classic pivot points). A close below 1.0563 and a reversal of the moving average could change the current balance of power. Additional bearish reference points within the day, in this case, can be noted at 1.0550 (S2) and 1.0534 (S3).
***
GBP/USD
Higher Timeframes
Throughout the past week, the pair relied on the support of the monthly medium-term trend (1.2135), so expectations and immediate prospects have not changed. For the bearish players, the tasks involve re-establishing a downward movement (1.2036) and consolidating within the weekly Ichimoku cloud (1.2027). For the bullish players, it is still important to overcome the resistance of the death cross of the Ichimoku cloud (1.2184 – 1.2212 – 1.2229 – 1.2275) and firmly consolidate above.
H4 – H1
On the lower timeframes, the bullish players are once again engaged in testing the strength of the weekly long-term trend, which is currently converging with the central pivot point of the day (1.2140-60). Trading above these levels will favor strengthening bullish sentiments, with intraday bullish targets being the resistance of the classic pivot points (1.2189 – 1.2217 – 1.2266). If the attempt to break the weekly long-term trend ends in failure and results in a rejection, then the focus for intraday trading will return to bearish targets—supports of the classic pivot points (1.2112 – 1.2063 – 1.2035).
EUR/USD
Higher Timeframes
The pair retained its position within the weekly cloud last week, so the top priority task for the bulls has stayed the same. They need to eliminate the death cross of the daily Ichimoku cloud (1.0627) while entering the bullish zone relative to the weekly cloud (1.0610). After this, they will have new opportunities and targets, such as encountering the weekly short-term trend (1.0697) and the monthly medium-term trend (1.0722).
In the event of bearish activity in the market, the tasks will be focused on re-establishing a downward movement (1.0449) and overcoming the final support of the monthly golden cross (1.0447), after which the market will interact with the lower boundary of the bullish weekly Ichimoku cloud (1.0317).
H4 – H1
There has been no clear direction on the lower timeframes for a while, and uncertainty prevails. Still, the market maintains its position above the weekly long-term trend (1.0563), giving some advantage to the bullish players. The bullish targets within the day today are at 1.0610 – 1.0626 – 1.0648 (resistance of the classic pivot points). A close below 1.0563 and a reversal of the moving average could change the current balance of power. Additional bearish reference points within the day, in this case, can be noted at 1.0550 (S2) and 1.0534 (S3).
***
GBP/USD
Higher Timeframes
Throughout the past week, the pair relied on the support of the monthly medium-term trend (1.2135), so expectations and immediate prospects have not changed. For the bearish players, the tasks involve re-establishing a downward movement (1.2036) and consolidating within the weekly Ichimoku cloud (1.2027). For the bullish players, it is still important to overcome the resistance of the death cross of the Ichimoku cloud (1.2184 – 1.2212 – 1.2229 – 1.2275) and firmly consolidate above.
H4 – H1
On the lower timeframes, the bullish players are once again engaged in testing the strength of the weekly long-term trend, which is currently converging with the central pivot point of the day (1.2140-60). Trading above these levels will favor strengthening bullish sentiments, with intraday bullish targets being the resistance of the classic pivot points (1.2189 – 1.2217 – 1.2266). If the attempt to break the weekly long-term trend ends in failure and results in a rejection, then the focus for intraday trading will return to bearish targets—supports of the classic pivot points (1.2112 – 1.2063 – 1.2035).
***
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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