EUR/USD
Bearish sentiment dominated the market yesterday. The bears were able to decline to the lower border of the daily cloud, which is located at 1.1837 today. To further decline, other daily support levels await at 1.1815-22 (Tenkan + Fibo Kijun) and a weekly short-term trend at 1.1787. If bearish traders manage to overcome these borders and consolidate the result, then the weekly timeframe will indicate a rebound from the resistance encountered at 1.1894 (weekly Fibo Kijun). After that, it will be possible to analyze the situation again and identify new prospects.
But if the bears do not implement a breakdown of the supports, it will be possible to complete the daily corrective decline in that area and form new prerequisites for another test of the weekly resistance (1.1894). The breakdown of the level of 1.1894 will open up new prospects for bullish traders, which are also better estimated by the result of the breakdown.
The bearish traders strengthened their positions and advantages in the smaller time frames. It declined below the key levels, which are now joining forces around 1.1855-60 (central pivot level + weekly long-term trend). The support for the classic pivot levels (1.1824 - 1.1808 - 1.1777) now serves as pivot points to further decline. In order to change the prevailing sentiments, bullish traders should regain key levels (1.1855-60), and then update the highs of the current decline (1.1885 - 1.1909).
GBP/USD
The bears were in control of the situation yesterday, and due to this, they organized an effective decline to the support area of 1.3778 (weekly Tenkan + daily cross + lower border of the daily cloud). If the bearish sentiment continues, the level of 1.3737 will enter (the final line of the daily cross). The breakdown of the supports and a reliable consolidation below will eliminate the daily Ichimoku gold cross and lead to the formation of a rebound in the weekly format. The subsequent interest in this direction will be directed to the weekly cloud (1.3651). A deceleration and consolidation in the area of 1.3778 may contribute to the recovery of strength by the bulls and provoke a new test of the strengthened zone of 1.3830-48, which combines important levels led by the monthly short-term trend (1.3848).
The main advantage in the smaller time frames belongs to bullish traders. The downward pivot points today are the support of the classic pivot levels 1.3746 - 1.3712 - 1.3657. The key levels in the current conditions keep the defense in the area of 1.3801-14 (central pivot level + weekly long-term trend). The breakdown and consolidation above will lead to changes in the current balance of power. The resistance to the classic pivot levels 1.3835 - 1.3890 - 1.3924 will serve as pivot points to resume growth on the hourly time frame.
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Ichimoku Kinko Hyo (9.26.52) and Kijun-sen levels in the higher time frames, as well as classic Pivot Points and Moving Average (120) on the H1 chart, are used in the technical analysis of the trading instruments.
