Relevance up to 05:00 2021-10-27 UTC–4
The bears are still hoping for a rebound from the encountered resistance in the area of 1.1664 and the completion of the upward correction in this area. Yesterday, they managed to exit the attraction zone of 1.1664 (historical level + the final line of the day’s dead cross) and declined to support levels of 1.1602 (historical level + daily Tenkan). The next supports to further drop can be noted at 1.1558 (lower border of the weekly cloud) and 1.1516 – 1.1494 (monthly levels).
The bulls lost their advantage in the smaller timeframes. As a result, the currently analyzed technical instruments support the strengthening of the bearish sentiment. The classic pivot levels (1.1577 – 1.1546 – 1.1502) serve as the downward pivot points. The key levels are forming a resistance area today, which will also defend the bearish interests currently set at 1.1621-35 (central pivot level + weekly long-term trend). However, a breakdown and consolidation above can change the current balance of power on the same timeframes.
The center of gravity is still the daily cloud (1.3777), which restrains the development of the directional movement. The pair is currently trading within the borders of 1.3830 (monthly short-term trend + weekly medium-term trend) – 1.3731 (weekly Fibo Kijun + daily Tenkan). Going beyond these limits will allow us to consider new opportunities.
For the bulls, the pivot points will be 1.3928-58 (the final level of the weekly dead cross + the upper limit of the monthly cloud). As for the bears, the nearest supports can be noted at the weekly borders of 1.3695 – 1.3661.
The pound continues to struggle for key levels in the smaller timeframes. They now combine their efforts in the area of 1.3764-88 (central pivot level + weekly long-term trend). A consolidation above will give the bulls the advantage on the hourly chart. Their next upward pivot points can be considered at 1.3814 (R2) – 1.3838 (R3). But if the key levels remain on the bearish side, then it will be important for them to update the minimum extreme (1.3735) and consolidate below.
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.
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
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