08.10.202113:15 Forex Analysis & Reviews: Technical analysis recommendations of EUR/USD and GBP/USD on October 8

EUR/USD

The situation has not received significant changes throughout the previous day. There was a slowdown when encountering the support level of 1.1538 (the lower border of the weekly cloud), and this mood still persists. The support level of 1.1538 is the first of the three nearest consecutive borders, namely 1.1538 - 1.1516 - 1.1494 (lower border of the weekly cloud + upper border of the monthly cloud + monthly medium-term trend).

Today, the current will be closed. It will be quite a good option for the bears, who will be able to start breaking through the encountered support levels next week with new strength, to maintain their gained positions. It should be noted that the formation of a strong rebound and the loss of current positions is very beneficial to its rival, the bulls. The first resistances of 1.1602 - 1.1616 (historical level + daily Tenkan) will be tested during growth.

The slowdown on higher timeframes delayed the market for a long time in the correction zone of the lower ones. Bullish traders rest on the key levels, but they have not yet managed to break through even the first of them - the central pivot level (1.1557). The main key level in the smaller timeframes, on which the change of the balance of forces acting on the hourly chart depends, is now located at1582. The closest resistance on this path can be noted at 1.1566 (R1). At the moment, the price chart is supported by S1 (1.1541), other pivot points from the classic pivot levels are set at 1.1532 and 1.1516.

GBP/USD

Consolidation in the attraction and influence area of historical and daily levels (1.3571 - 1.3601) remains. In case of leaving this zone, the bullish interests will be directed first on testing the border of 1.3661 (weekly short-term trend + daily medium-term trend), and then interacting with the resistance zone, which is currently based on weekly levels of 1.3731-52. As for the bears, their primary task is to update the low (1.3411) and restore the downward trend.

The bulls in the smaller timeframes have no plans on giving up their main advantage yet. They are testing key levels, which still act as support levels, and are now located at 1.3608 (central pivot level) and 1.3592 (weekly long-term trend). The continuation of the upward movement will lead us to the resistances of the classic pivot levels 1.3645 - 1.3676 - 1.3713.

On the contrary, a consolidation below the levels of 1.3608 - 1.3592 will change the current balance of power in the same timeframe. If the downward trend resumes, we can consider the intraday support levels of 1.3577 - 1.3540 - 1.3509 (classic pivot levels).

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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.