The renewal of last week’s highs did not allow the bulls to continue the rally. The situation was hampered by the effective bearish correction. On the last day of the week, the market tested quite a strong support zone (1.0901 – 1.0862), combining many levels from different timeframes. At the end of the meeting a rather long lower shadow was formed on the candlesticks of the daily and weekly charts. This support zone (1.0901 – 1.0862) retained its value. Working above 1.0901, as well as entering the bullish zone relative to the daily cloud (1.0906), will provide a bullish advantage and this will give bulls the hope that they can further recover. The nearest bullish targets will be the maximum extremums (1.1012 – 1.1096). A breakthrough (1.0901 – 1.0862) set the task of breaking out of the daily cloud (1.0806), as well as to eliminate the daily (1.0780) and weekly (1.0789 – 1.0717) Ichimoku golden crosses.
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GBP/USD
The bears have been busy developing a downward correction. They fell short of testing the daily short-term trend (1.2675). Therefore, the bearish targets remain unchanged and will retain their significance, as they will confront bearish players at the levels of the daily (1.2675) and weekly (1.2577) short-term trends. For bulls, the existing targets also remain unchanged, currently positioned at 1.2760 (the final level of the monthly Ichimoku cross) and 1.2893 (the lower band of the monthly Ichimoku cloud).
EUR/USD
The renewal of last week’s highs did not allow the bulls to continue the rally. The situation was hampered by the effective bearish correction. On the last day of the week, the market tested quite a strong support zone (1.0901 – 1.0862), combining many levels from different timeframes. At the end of the meeting a rather long lower shadow was formed on the candlesticks of the daily and weekly charts. This support zone (1.0901 – 1.0862) retained its value. Working above 1.0901, as well as entering the bullish zone relative to the daily cloud (1.0906), will provide a bullish advantage and this will give bulls the hope that they can further recover. The nearest bullish targets will be the maximum extremums (1.1012 – 1.1096). A breakthrough (1.0901 – 1.0862) set the task of breaking out of the daily cloud (1.0806), as well as to eliminate the daily (1.0780) and weekly (1.0789 – 1.0717) Ichimoku golden crosses.
***
GBP/USD
The bears have been busy developing a downward correction. They fell short of testing the daily short-term trend (1.2675). Therefore, the bearish targets remain unchanged and will retain their significance, as they will confront bearish players at the levels of the daily (1.2675) and weekly (1.2577) short-term trends. For bulls, the existing targets also remain unchanged, currently positioned at 1.2760 (the final level of the monthly Ichimoku cross) and 1.2893 (the lower band of the monthly Ichimoku cloud).
***
The technical analysis of the situation used:
high timeframes – Ichimoku Kinko Hyo (9.26.52) + Fibo Kijun levels;
lower timeframes – 1H – 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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