The bulls closed the previous week as optimistically as possible. They managed to leave the consolidation zone and gain a foothold above the key resistances of the previous week 1.2064 (weekly level) – 1.2092 (upper border of the daily cloud). The main tasks for confirming and developing bullish potential now boil down to maintaining the passed levels as supports, consolidating in the bullish zone relative to the daily cloud and forming a daily upward target. If the rise continues, the reference points will be the upward target for the breakdown of the daily Ichimoku cloud and the nearest maximum extremes (1.2243 – 1.2349). If the upside loses 1.2064-92 and the euro manages to confidently gain a foothold below, then we can expect the formation of a rebound from the resistance encountered. The next support, if the decline develops, will be the daily short-term trend, now it is at 1.2030, then the value will be the 1.1975 area (accumulation of levels of different timeframes).
On lower time intervals, the advantage belongs to the bullish players. They develop an upward movement and enjoy the support of all analyzed technical instruments. The upward targets within the day are the resistances of the classic Pivot levels, which today are located at 1.2126 – 1.2157 – 1.2213. At the moment, braking is observed. The key levels of the minor halves are now supports and are joining forces at 1.2070 and 1.2044 (central pivot level + weekly long-term trend). Anchoring below will change the current balance of power. It should be noted that in this area, confirmation of preferences will come simultaneously from the older timeframes. The next downside targets within the day may be the support of the classic pivot levels 1.1983 and 1.1952.
Last week, the pound tested the resistance zone of the weekly and monthly level of 1.3955 (weekly short-term trend + upper border of the daily cloud) – 1.4002 (upper border of the monthly cloud). At the same time, it formed a weekly rebound (a long upper shadow on a weekly candlestick). In this situation, it should be borne in mind that during the formation of the rebound, the pair rested on the support of the daily levels (1.3839-45). As a result, longer deceleration or consolidation is now possible. The breakdown of 1.3955 – 1.4002 will open up new prospects for upward traders, the closest will be the daily target for the breakdown of the Ichimoku cloud and the maximum extremum (1.4240). A breakdown of the 1.3839-45 area and a reliable consolidation below will allow us to speak about the confirmation of the last week’s rebound and the prospects for its implementation. The next supports can be noted at 1.3798 and 1.3710-1.3669.
The main advantages in the minor halves continue to be on the side of the upward players. Overcoming the resistance of the weekly long-term trend (1.3917) will change the current balance of power. The next upward reference point within the day in this case will be 1.3964 (R3). Anchoring under 1.3867 (central pivot level) can affect the distribution of power in the lower halves. The intraday support is located at 1.3840 – 1.3805 – 1.3778 (classic Pivot levels).
In the technical analysis of the situation, the following are used:
higher timeframes – Ichimoku Kinko Hyo (9.26.52) + Fibo Kijun levels
Н1 – Pivot Points (classic) + Moving Average 120 (weekly long-term trend)