23.10.202011:44 Forex Analysis & Reviews: Technical recommendations for EUR/USD and GBP/USD on October 23

EUR / USD

Exchange Rates 23.10.2020 analysis

A rebound was formed from the reached resistance levels of 1.1850-67 (target for the breakdown of the H4 cloud + day cloud) due to the decline. As a result, the pair tested the support levels led by the daily short-term trend (1.1784). Moreover, the support zone is now quite broad, consisting of a weekly short-term trend (1.1811) and a daily Ichimoku cross (1.1784-46-15). Now, in case that the bulls manage to close the week above the indicated supports today, they will level out bears' achievements yesterday and return to fight for the encountered resistance levels.

Exchange Rates 23.10.2020 analysis

In the smaller time frame, the key support level which is now located at 1.1799 (weekly long term trend) was tested by the current downward trend. The level continues to defend the interest of the bullish traders. At the same time, we can note the important stages for the recovery of bullish positions – 1.1832 (central pivot level) and 1.1881 (maximum extreme). The breakdown of support at 1.1799 and the reversal of moving averages will change the balance of power in the lower halves and then lead to the confirmation of the rebound of the larger time frames and increase the potential for its implementation. Today, other intraday support levels are located at 1.1776 (S2) and 1.1740 (S3).

GBP / USD

Exchange Rates 23.10.2020 analysis

The growth of the pair stopped. If the current week closes below the level of 1.3076 (weekly short-term trend) and returns to the daily cloud, it will contribute to the pound's decline to the middle part of the area: 1.2943-25 (weekly Fibo Kijun + daily Kijun). Meanwhile, there is a cluster of other supports at 1.3018 (daily Tenkan) and 1.2980 (lower limit of the daily cloud), before heading to the supports at 1.2943-25, so a decline and consolidation below which will favor the further strengthening of bearish moods.

If the support levels manage to cope and the bulls maintain their position in the bullish zone relative to the daily cloud and above the weekly Tenkan (1.3076), then we can expect growth. The upward targets are still located at 1.32 (historic level) and 1.3350 (lower limit of the monthly cloud).

Exchange Rates 23.10.2020 analysis

The pair continues to work in a downward correction. The key levels in the smaller time frames today are located at 1.3100 (central pivot level) and 1.3013 (weekly long-term trend). Now, a consolidation above will increase the chances of further recovery of bulls' positions, whose main task is to recover the upward trend. On the other hand, breaking through the supports at 1.3100 - 1.3013 and a reliable consolidation below will change the balance of power, while further prospects will depend on the breakdown of support levels in the larger TFs.

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

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

David Bale,
Analytical expert
InstaForex Group © 2007-2020
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