Fundamental factors
The key event of the day is the publication of macroeconomic statistics from the United Kingdom. The claimant count change report and the average earnings data are on tap.
EUR/USD
The pair keeps moving in the correction zone. In the past 24 hours, the situation remained unchanged. The key resistance levels are located at 1.1123-1.1090 as defined by the daily Cross pattern, the weekly Tenkan, the weekly Fibo Kijun-sen and the monthly Senkou Span A. Meanwhile, the support level is located at 1.0926-58 that is the minimum extremum and the historic low. The current accumulation zone is 1.1010-50 according to the daily Tenkan and Fibo Kijun-sen.
As seen on the H1 chart, bulls have managed to recoup some losses, as the price reached the central pivot point of the day. At the same time, the support level that plays a key role in maintaining the bullish bias is now located near 1.1043-20 (the central pivot level and the weekly long-term tendency). Bears can become stronger once the price holds below 1.1043-20 supported by technical indicators. Consequently, bears may test the downside targets that lie today at 1.0991 (S2) and 1.0967 (S3). Further on, the turning point will be breaking of the minimum extremum at 1.0926.
GBP/USD
Yesterday bulls maintained short-term momentum with the support at 1.2267. As a result, the pair continued moving towards the daily cloud at 1.2353-1.2431. The daily cloud is reinforced by the weekly Kijun-sen (1.2480) and the H4 target for breaking the cloud (1.2435-88). Thta is why it is important to break both the cloud and other key levels of this area in order to decide where the price will go next.
The previous downward correction was completed in the retracement zone. After that, bulls hit fresh highs and the trend continued. The intraday upward targets are the support of the classic pivot levels at 1.2106 (R1) – 1,2470 (R2) – 1,2557 (R3). Currently, the pair is again in the downward correction zone. The key support levels that can help the pair to retrace and keep the bullish momentum are located at 1.2319 (the central pivot point) and 1.2247 (the weekly long-term tendency). Breaking and holding below this level will influence the current balance of power. The next support levels can be found at 1.2168 (S2) - 1.2104 (S3).
EUR/USD and GBP/USD divergence (daily timeframe)
New divergence has not been found.
Ichimoku Kinko Hyo (9.26.52), Pivot Points (classic), Moving Avarage (120)
