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22.10.202010:39 Forex Analysis & Reviews: Technical recommendations for EUR/USD and GBP/USD on October 22

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EUR / USD

The bulls tested the upper limits of the current upward pivot points 1.1850-67 (target for the breakdown of the H4 cloud + daily cloud), which indicated a slowdown. A reliable consolidation in the bullish zone relative to the daily cloud will allow us to consider the bulls' further strengthening. In this case, the goal will be to update the weekly upward trend (1.2011), then attention will be directed to the continuation of the rise to the upper limit of the monthly cloud (1.2167). The closest support is still the weekly short-term trend passed the day before (1.1811), then the support of the daily Ichimoku cross may have a value 1.1784-46-15.

The smaller time frames currently prefer the development of a downward correction. The bears captured the central pivot level (1.1854) and secured the support of the analyzed technical indicators. Today, the scale of a possible corrective movement is significant. The final important pivot point is now at 1.1774 (weekly long-term trend), with the nearest support levels at 1.1826 (S1) and 1.1794 (S2). To cancel such bearish plans, the upward trend (1.1881 maximum extreme) should be updated. The resistances of the classic pivot levels are located today at 1.1886 - 1.1914 - 1.1946.

GBP / USD

The bulls managed to leave the zone of uncertainty and attraction (1.2943-60-70), which held back the development of the situation for a long time. Now, the nearest upward targets are 1.32 (historical benchmark) and 1.3350 (lower limit of the monthly cloud). The levels 1.3076 - 1.3100 (weekly Tenkan + daily cloud), passed the day before form support. It is important for the bulls to hold above these levels.

The scale of yesterday's movement pushed the limits of today's classic pivot levels. As a result, the resistance of the classic pivot levels will meet the bulls by 1.3234 - 1.3324 - 1.3473, given that the growth continues (1.3176 high). Meanwhile, with the development of a downward correction, the key support levels responsible for maintaining the balance of power are currently located at 1.3085 (central pivot level) and 1.2976 (weekly long-term trend).

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

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