FX.co ★ Technical analysis recommendations on EUR/USD and GBP/USD for October 3, 2022

EUR/USD

Higher timeframes

Last week marked the beginning of a corrective rise. At the same time, on the daily timeframe, the emerging correction reached the main resistances of the daily death cross (0.9756 - 0.9867). The nearest reference point for the development of a correction is now the area of 0.9945–52 (the final level of the daily Ichimoku cross + weekly short-term trend). The elimination of the daily cross and the acquisition of weekly short-term support will allow us to consider further prospects, for example, overcoming the trend line, the psychological level of 1.0000, the weekly resistance (1.0071) and entering the daily cloud. If the correction fails and ends, it will be possible to assess the situation for bears in more detail when the low (0.9536) is updated and the downward trend is restored.

H4 – H1

At the moment, the main advantage on the lower timeframes belongs to bulls. To continue the rise, the following reference points 0.9860 - 0.9917 - 0.9979 (classic pivot points) can be noted, and if bullish sentiment strengthens, an upward target will be formed for the breakdown of the H4 cloud. The current attraction and support is now provided by the central pivot point of the day (0.9798). As the correction deepens, the main attention will shift to support at 0.9692 (weekly long-term trend), S1 (0.9741) may provide intermediate support. Consolidation below and reversal of the moving average will affect the current balance of power. In the current situation, the transition of the main advantage to the side of the bears may be the beginning of the completion of the corrective rise in the higher timeframes.

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GBP/USD

Higher timeframes

The last weekly candle has a pronounced character of the new activity of the bulls and the development of the next upward correction. At the same time, the candle for September, with its long lower shadow, spoke in favor of strengthening bullish sentiment. Bulls now targets the elimination of the daily death cross (1.1223) and consolidation above the accumulation of resistance 1.1317 - 1.1411 - 1.1421 (weekly levels + historical support). After the implementation of these tasks, new plans and prospects will appear. Among the bearish reference points today, we can note the support of 1.1058 - 1.0870 (levels of the daily cross) and 1.0355 (local low).

H4 – H1

As of writing, the main advantage on the lower timeframes is on the side of the bulls. They are testing R1 (1.1257), then the classic pivot points R2 (1.1350) and R3 (1.1467), and the target for the breakdown of the H4 cloud (1.1464 - 1.1588) serve as reference points. The key levels of the lower timeframes today act as supports and are located at 1.1140 (central pivot point of the day) and 1.0885 (weekly long-term trend). Intermediate supports can be noted at 1.1047 and 1.0930 (classic pivot points). Consolidation below and reversal of the moving average can change the current balance of power.

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In the technical analysis of the situation, the following are used:

higher timeframes – Ichimoku Kinko Hyo (9.26.52) + Fibo Kijun levels

H1 - Pivot Points (classic) + Moving Average 120 (weekly long-term trend)