Technical recommendations for EUR/USD and GBP/USD on October 6

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Technical recommendations for EUR/USD and GBP/USD on October 6

Technical recommendations for EUR/USD and GBP/USD on October 6

EUR / USD

Technical recommendations for EUR/USD and GBP/USD on October 6

The bulls continued to rise and reached the zone of influence of the following resistance level at 1.1811 (daily Kijun + weekly Tenkan). If this level will be broken, it will allow the bulls to consider the possibility of getting out of the daily cloud (1.1868), eliminating the daily dead cross (1.1859) and working out the goal for breaking the H4 cloud (1.1847- 73). On the other hand, the formation of a rebound in the current situation will return the pair to one of the most significant limits – 1.1688 (the lower limit of the monthly cloud). The result of interaction with 1.1688 can determine the nearest prospects for the development of the euro’s movement.

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The intraday upward targets in the smaller time frames are now located at 1.1819 (R1) – 1.1854 (R2) – 1.1910 (R3). At the same time, the pair is in the zone of a downward correction, and the key supports to protect bullish interests are located today at 1.1763 (central pivot level) and 1.1738 (weekly long-term trend). A consolidation below which and a reversal of moving averages will affect the current distribution of advantages, allowing the bears to take over the situation. Their plans will be aimed at updating the low extremes (1.1696-1.1612) and restoring the downward trend. In this case, intraday support can be provided by 1.1672 (S2) and 1.1637 (S3).

GBP / USD

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The bulls continue to insist on continuing the rally. They updated last week’s high yesterday. However, the reached resistances 1.2943-82 – 1.30 (weekly Fibo Kijun + daily Fibo Kijun + four-hour target) do not allow us to achieve convincing results, holding back the development of the situation. Meanwhile, breaking through the support levels will open the way to the next important limits – 1.3076 (daily Kijun + weekly Tenkan) and 1.32 (historical level + final levels of the daily cross and cloud). Now, in case of a sharp change of priorities, the nearest supports are located today at 1.2846 (daily Tenkan + lower limit of the daily cloud).

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The advantage remains on the bulls’ side in the smaller time frames. Moreover, the upward targets within the day, in the form of resistance levels, are now located at 1.3012 – 1.3046 – 1.3103. If a correctional decline develops, the key support will meet the pair at 1.2955 (central pivot level) and 1.2908 (weekly long-term trend). Now, a breakdown below which will change the current balance of forces. The next downside targets will then be considered at 1.2864 (S2) and 1.2830 (S3). These supports are strengthened from the upper time frames (1.2846). Therefore, breaking them will allow us to consider the formation of a rebound from the reached resistances on the higher time frames.

Ichimoku Kinko Hyo (9.26.52), Pivot Points (classical), Moving Average (120)

The material has been provided by InstaForex Company – www.instaforex.com

Source : https://www.mt5.com/forex_analysis/quickview/260936/