EUR/USD
The pair closed yesterday below the all-time support level (1.2170) and below the daily Ichimoku gold cross. A reliable consolidation in the current positions will allow us to eliminate the daily cross. The levels of the cross overcome the day before are currently acting as resistances (1.2241 - 1.2204 - 1.2170). Now, the next task to strengthen bearish mood is to perform a weekly downward correction to the weekly short-term trend (1.2075). The support of the downward target for the breakdown of the H4 cloud (1.2091 - 1.2116) is currently on its way to implement the correction.
The bears have the main advantage in the smaller time frame. Here, the classic pivot levels of 1.2112 - 1.2074 - 1.2017 are considered to be the downward pivot points for the intraday decline. However, it should be noted that the development of the trend movement is suspended, as the pair has been working in the correction zone for a long time.
The key levels in the smaller time frames are now forming a large-scale range for the correction of 1.2169 (central pivot level) - 1.2250 (weekly long-term trend), joining forces with the resistance levels in the higher time frames (1.2170 - 1.2241). A breakdown of this zone and consolidation above will require a new assessment of the situation, as the current balance of power will change.
GBP/USD
The pound executes the development of a downward correction. Bearish traders managed to seize the daily short-term trend, and as a result, the level was turned into the nearest resistance (1.3577). In case of recovery of positions and consolidation above the level of 1.3577, the bulls' main task in this area will be to update the high and restore the upward trend (1.3703). Today, the nearest support levels retain their location at 1.3486 (daily Fibo Kijun), 1.3416 (weekly Tenkan + daily Kijun), and 1.3350 (monthly Senkou Span A + daily Fibo Kijun). The bears, in turn, can only consider further plans if they successfully consolidate below it.
As a result of the corrective rally, the bulls in the smaller time frame seized the central pivot level (1.3509) and are now testing the strength of the weekly long-term trend (1.3569). A consolidation above which and reversal of moving averages will allow us to consider further opportunities to strengthen the bullish mood. The resistances of the classic pivot levels R2 (1.3624) and R3 (1.3682) will become upward pivots within the day. Meanwhile, the relevance of the supports of the classic pivot levels (1.3452 - 1.3294 - 1.3337) will only return the completion of the current correction and the restoration of the downward trend (1.3450).
Ichimoku Kinko Hyo (9.26.52), Pivot Points (classical), Moving Average (120)
