FX.co ★ Technical analysis recommendations on EUR/USD and GBP/USD for October 4, 2022

EUR/USD

Higher timeframes

Bulls remain in the mood and seek to continue the development of the corrective rise, which began last week. As of writing, the resistance of the daily medium-term trend (0.9867) is being tested. Its breakdown will open an opportunity to rise to the previously indicated reference points, which today retain their location within 0.9952 - 1.0071. Immediate support in the current situation can be noted at 0.9789 - 0.9722 (levels of the daily Ichimoku cross).

H4 – H1

Bulls also hold the advantage on the lower timeframes. As of writing, bullish players are trying to overcome the resistance of R1 (0.9862), and then the classic pivot points can be noted at 0.9900 (R2) and 0.9954 (R3). In addition, as an upward benchmark, a target for the breakdown of the H4 cloud (1.0017 - 1.0070) has formed. The key levels of the lower timeframes today still act as supports, which now protect bullish interests at the levels of 0.9808 (central pivot point) and 0.9729 (weekly long-term trend).

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GBP/USD

Higher timeframes

The pair has updated the high of the last week and continues to rise. As of writing, the result of interaction from the meeting with the resistance zone 1.1317 - 1.1411 - 1.1421 (weekly levels + historical support) is being formed. Reliable breakout and consolidation above will allow us to consider new upward prospects. The closest supports today are the levels of the daily Ichimoku cross, located at 1.1223 - 1.1058 - 1.0884.

H4 – H1

Bulls hold the advantage on the lower timeframes and continue to rise. The reference points for the upward trend within the day today can be noted at 1.1407 - 1.1495 - 1.1656 (classic pivot points) and 1.1464 - 1.1588 (target for the breakdown of the H4 cloud). The key levels are now at 1.1246 (central pivot point) and 1.0998 (weekly long-term trend). The breakdown of these supports 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)