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08.10.202011:17 Forex Analysis & Reviews: Technical recommendations for EUR/USD and GBP/USD on October 8

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EUR / USD

Exchange Rates 08.10.2020 analysis

The bears were not able to confirm the rebound. As a result, the euro/dollar pair continues to work between significant levels - 1.1811 (weekly Tenkan + closing limits of the daily cross) and 1.1688 (lower limit of the monthly cloud). It will be possible to consider further options for the development of the situation after consolidating above or below these levels.

Exchange Rates 08.10.2020 analysis

Moreover, they failed to take a retest and so, the bulls have recovered the key levels of the smaller time frames, which are united around 1.1757-52 (central pivot level + weekly long-term trend) today. Due to this, it has an advantage on the hourly TF. The upward pivot points within the day are the resistance levels of 1.1788 - 1.1814 - 1.1845. In this direction, the main task is to reliably recover the upward trend (1.1808). The loss of key levels (1.1757-52) could inspire the bears to decline again. On the other hand, intraday supports are located at 1.1731 (S1) - 1.1700 (S2) - 1.1674 (S3). Next, the downward trend (1.1612) should be recovered.

GBP / USD

Exchange Rates 08.10.2020 analysis

The bearish sentiment last Tuesday was disappointing. The pound/dollar pair remains in the attraction zone of the weekly and daily Fibo Kijun (1.2943). In case of bull's activity, we still have the level of 1.3076, which will allow the bulls to return the weekly short-term, eliminate the daily dead cross and test the historical resistance - 1.32. In order to strengthen the bearish sentiment, bears need to break through 1.2866 -78 (the lower border of the daily cloud + daily Tenkan), then everything will rest at 1.2777-11 (weekly Kijun + monthly Fibo Kijun), just like before.

Exchange Rates 08.10.2020 analysis

Yesterday, the bears performed a retest and updated the low, but failed to do more. As a result, the pair returned to key levels in the lower time frames, while the bulls managed to gain an advantage by consolidating higher. The upward pivot point within the day is now the resistance levels of 1.2948 - 1.2981 - 1.3033. The main task is to reliably recover the upward trend (high extremum 1.3006).

On the other hand, the next change of priorities and the loss of key supports 1.2923 (weekly long-term trend) - 1.2896 (central pivot level) will swing the scales again on the hourly TF in favor of the bears. Next, support for classic pivot levels (1.2863 - 1.2811 - 1.2778) can start working.

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

Evangelos Poulakis
Analytical expert of InstaForex
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