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27.10.202010:47 Forex Analysis & Reviews: Technical recommendations for EUR/USD and GBP/USD on October 27

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EUR / USD

Last Friday's positivity has not yet been confirmed. The bearish traders pushed the pair back to the important support zone, consisting of weekly (1.1811) and daily (1.1784) short-term trends. Trading above these levels and entering the bullish zone relative to the daily cloud maintains the bulls' chances of continuing growth. Here, the nearest upward pivot points are still the maximum extremes of 1.1881 - 1.1917 - 1.2011.

On the other hand, a reliable consolidation below the range of 1.1811 - 1.1784 can delay the development of the situation, while opening up opportunities to decline to support levels of 1.1746 (daily Kijun) - 1.1715 (daily Fibo Kijun) - 1.1688 (the lower border of the monthly cloud).

The bears remain in the retest zone, keeping the key levels of the smaller time frames 1.1832 (weekly long-term trend) and 1.1824 (central pivot level of the day) as resistances. A consolidation above will strengthen the bears on the hourly TF. Now, the situation will be greatly uncertain until the current highs (1.1865-81) are updated. The formation of a rebound and exit from the correction zone will allow us to consider the prospects for a decline. The main support levels within the day are located at 1.1788 - 1.1767 - 1.1731.

GBP / USD

The levels of 1.3018 (daily Tenkan) - 1.2980 (daily cloud + Fibo Kijun) - 1.2943-25 (daily Kijun + weekly Fibo Kijun) form the current support and provide attraction. A consolidation below which will allow us to consider further bearish prospects. On the contrary, if we hold our positions, it will preserve uncertainty, while a consolidation above 1.3076 (weekly Tenkan) will return options and opportunities on the side of the bulls.

The bears almost update the low (1.2992) and continue to decline after testing the key levels which were overcome in the smaller time frames. Meanwhile, intraday support levels are located at 1.2980 - 1.2945 - 1.2898. A consolidation above 1.3027-46 (central pivot level of the day + weekly long-term trend) will change the balance of power in the smaller time frames in favor of bulls who will need to break through a significant resistance level of 1.3076 from the higher time frame, in order to consolidate their result.

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

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