The pair made a slight decline yesterday. At the same time, it retained its position below the current resistances of 1.1950-75 (lower border of the daily cloud + weekly Fibo Kijun + monthly short-term trend) and above the nearest supports of 1.1866-47 (border of the weekly cloud + minimum extremum). As a result, these pivot points are still relevant. A breakdown and a consolidation below/above them will create new opportunities. For the bears, the prospects will be the target for the breakdown of the daily Ichimoku cloud (1.1684-19) and the monthly Fibo Kijun (1.1695), while for the bulls, the subsequent resistances (1.2027 – 1.2057 – 1.2103) will serve as pivot points.
The pair in the smaller time frames remains in the attraction zone of the key levels, which are joining forces around 1.1902-27 (central pivot level + weekly long-term trend) today. The preservation of the preponderance of forces on the side of the bearish players and the continuation of the decline will return interest to the downward intraday targets – the supports of the classic pivot levels (1.1873 – 1.1850 – 1.1821).
On the other hand, consolidation above (1.1902-27) will affect the current balance of forces, which will most likely allow the bulls to further rise, focusing on the resistances of the classic pivot levels 1.1954 (R2) and 1.1977 (R3) at the H1 chart.
The bears continued to decline yesterday, closing the last day below the support of the weekly medium-term trend (1.3850). The retention of direction and activity will allow the pair to test the support levels of 1.3786-54 (minimum extremum + final line of the weekly gold cross of Ichimoku).
Currently, the resistance levels of 1.3958-42 (lower border of the daily cloud + weekly Fibo Kijun + upper border of the monthly Ichimoku cloud) are far behind and are unlikely to be relevant today. The daily short-term trend (1.3893) can now provide the nearest resistance in the direction of 1.3958-42.
The bears currently have the advantages in the smaller time frames. They tend to get out of the correction zone and continue the downward trend. The next support can be noted at 1.3803 – 1.3774 – 1.3735 (classic pivot levels). The main pivot points for the development of the correction are 1.3842 (central pivot level) and 1.3901 (weekly long-term trend). A consolidation above it will change the balance of power and will allow the pound to retest the important resistance zone in the higher time frames seen in the area of 1.3958-42.
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.