EUR/USD
The month of February is almost over. Bulls are attempting to stop the downward correction to go back to their positions. For this to happen, the bullish sentiment of the monthly candle, which currently has a long lower shadow, must be maintained. Bullish traders are advised to keep the position above 1.2150-70 (weekly short-term trend + historical level) for the last two days of the month. They are also encouraged to enter the bullish zone in connection to the daily Ichimoku cloud (1.2186).
Here, the 1.2150-70 area continues to provide its influence, remaining to be the center. The next support levels are still set at 1.2103 (daily Tenkan) and 1.2071-64 (daily Kijun + weekly Fibo Kijun).
Yesterday, the bulls took advantage of the strong support of the weekly long-term trend, while making a downward correction. So most likely, they will resume the upward trend. The resistances of the classic pivot levels of 1.2192 - 1.2217 - 1.2258 are considered to be the upward targets. In the smaller time frames, the key supports are forming an important support zone within the range 1.2151-34 (central pivot level + weekly long-term trend). Now, if a consolidation occurs below and the moving averages reverse, the current forces in the H1 chart will change. If so, the bearish mood will strengthen. Today, the supports of the classic pivot levels are set at 1.2126 - 1.2085 - 1.2060.
GBP/USD
The weekly target (1.4181) for the Ichimoku cloud breakout is entirely fulfilled. The pair indicated a slowdown, as it was unable to reach above the resistance of the upper limit of the monthly cloud (1.4314). In this situation, tomorrow's closing result of the current week and month is interesting and important. The closest support in the bigger time frame is the daily short-term trend located at 1.4034.
The pound has been in the downward correction zone for quite some time now. Yesterday, the support for the central pivot level managed to stop the downward correction from developing. However, the bears are trying to continue the correction, leaving the central pivot at 1.4153.
The next important pivot point for the correction is the weekly long-term trend (1.4054). The current situation will change if the bear successfully breaks through this level, reverses, and catches the daily short-term (1.4034). Once the downward correction ends, we can now consider the upward targets – the resistances of the classic pivot levels of 1.4225 - 1.4312 - 1.4384.
The following methods are used in the technical analysis of the situation:
Higher time frames – Ichimoku Kinko Hyo (9.26.52) + Fibo Kijun levels
H1 – Pivot Points (classic) + Moving Average 120 (weekly long-term trend)
