FX.co ★ Technical recommendations for the EUR/USD and GBP/USD pair on 11/23/20

EUR / USD

The euro took a wait-and-see position last week. As a result, important levels retained their location and significance. In turn, conclusions and possible scenarios also remained the same. The bulls are currently moving into resistances 1.1881 - 1.1929 (historical level + 100% target for breaking through the H4 cloud). If this area will be broken and the price consolidates above it, there will be a possibility of restoring the weekly and monthly upward trend (1.2011), as well as testing the upper limit of the monthly Ichimoku cloud (1.2018). But if the bulls fail to do so and the bearish mood appears, then the quote may return to the support of the daily cloud (1.1812), strengthened by the weekly short-term trend (1.1761).

The bulls retain the advantage in the smaller time frames, but the key support levels that are responsible for the distribution of strength are very near to the price chart today. If the range of 1.1860-66 (central pivot level of the day + weekly long-term trend) will be overcome and the moving average will reverse, it will create conditions for the strengthening of the bearish market. In this case, the support levels of 1.1841 - 1.1825 - 1.1800 will be the downward pivot points within the day. If the key levels (1.1860-66) succeed again in defending the bullish interests, then all the strength of the bulls will be directed to break down the resistance zone of 1.1881 - 1.1929 in the higher time frames.

GBP / USD

The bulls managed to improve the situation last week by regaining the important level of 1.32. Today, they went further and updated the highs of the previous weeks. Now, our attention will be focused on breaking through the important resistance of 1.3350 (lower limit of the monthly cloud), from which the pound entered. If this plan works out and the price consolidates above which, new guidelines will be considered. The formation of the next rebound will lead to the return of bearish mood. In this case, the question will arise again: which of the market participants will own the all-time level of 1.32?

There is an active phase of the upward trend in the smaller time frames. The pair forms a new high. In the one-hour TF, the nearest resistance level of 1.3350 (R3) coincides with an important resistance level of the bigger time frames, which led to its strengthening. The further development of events depends on the result of interaction. Now, the key support levels in the smaller TFs are now joining forces in the range of 1.3273-52 (central pivot level + weekly long-term trend).

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