20.09.202113:05 Forex Analysis & Reviews: Technical analysis recommendations of EUR/USD and GBP/USD on September 20

EUR/USD

The previous week closed with good bearish potential. Due to this, the downward movement continued today, and the prospects for its continuation have not yet been questioned. The nearest pivot points in this direction are now the monthly Fibo Kijun (1.1695) and the border of the previous minimum extreme (1.1664). Breaking through this level and consolidating below it will allow the bears to consider new prospects and opportunities to decline.

If slowdown occurs and positions are restored, the bulls will need a lot of strength to reach out and catch on to the attraction of the levels broken the day before, since they are located at a considerable distance both from the price chart and from each other. The resistance levels are set at 1.1757 (daily Fibo Kijun) and 1.1781-87 (daily cross + weekly Tenkan).

The full advantage in the smaller time frames is on the bearish side. They continue to decline and are currently around the first support of the classic pivot levels (1.1703). The next support levels are at 1.1681 and 1.1638. If they take a pause, which will result in an upward correction, then the key levels in the same timeframe will allow developing a quite deep growth, as they are located at 1.1746 (central pivot level) and 1.1786 (weekly long-term trend).

GBP/USD

Bearish traders managed to put a convincing point at the close of the previous week, so their result does not raise doubts about the current advantages. The result was immediate – the decline continues today. The pair broke through the final support of the daily cross (1.3720) and entered the weekly cloud (1.3699), turning these borders into nearest resistance. Maintaining what has been achieved and continuing the movement will allow us to hope for an update of the nearest minimum extremes (1.3601-1.3571).

Currently, a downward trend is being developed by the bears. The second support for the classic pivot levels (1.3666) is currently being tested. The S3 level (1.3608) remains as the next downward pivot point. Today, the key levels are located at a considerable distance, which suggests a fairly large opportunity for the development of an upward correction without changing the current balance of forces. The central pivot level is at 1.3754 and the weekly long-term trend is at 1.3806.

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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.