EUR/USD
The bulls have successfully broken out of the gravitational zone between 1.0819 and 1.0856, continuing their upward movement to reach the key levels of 1.0943 to 1.0948. Currently, as the pair tests the upper boundaries of the weekly and monthly Ichimoku cloud, a breakout could lead to consolidation in the bullish zone, allowing for higher targets for further gains. However, if the bulls fail to achieve this, the pair may revert to the cluster of levels around 1.0819 to 1.0856.
On lower timeframes, the pair is in a corrective zone, testing support at the central Pivot level of the day, which is 1.0898. A break below this level would open the path toward the weekly long-term trend at 1.0834. Should this level be breached and the trend reverse, it could shift the current balance of power. Additional reference points to monitor for further declines include the classic Pivot levels at 1.0784 and 1.0733. If the corrective pullback ends and the bulls regain control, attention will shift back to the resistance of the classic Pivot levels at 1.0961, 1.1012, and 1.1075, which are key bullish targets for the day.
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GBP/USD
The currency pair is currently testing weekly resistance levels between 1.2873 and 1.2923, along with the first target level for a breakout from the daily Ichimoku cloud at 1.2952. A phase of consolidation and uncertainty is emerging. If the bulls succeed in breaking out of this consolidation zone, their next target will be to reach the 100% breakout level of 1.3047. Conversely, if the bears gain control and push the pair lower, they will first encounter previously tested higher timeframe support levels at 1.2807 and 1.2765, which are reinforced by the daily short-term trend at 1.2761.
On lower timeframes, during the ongoing corrective decline, the pair is testing key levels at 1.2925 (the central pivot level for the day) and 1.2901 (the weekly long-term trend). A breakout and trend reversal at these levels would give an advantage to the bears. For further downward movement, the pair needs to break through the support of the classic Pivot levels at 1.2887, 1.2831, and 1.2793. If the correction concludes, attention will turn to resistance of the classic Pivot levels at 1.2981, 1.3019, and 1.3075.
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Technical Analysis Components:
- Higher Timeframes: Ichimoku Kinko Hyo (9.26.52) and Fibonacci Kijun levels
- H1: Classic Pivot Points and 120-period Moving Average (weekly long-term trend)
