Relevance up to 06:00 2021-10-16 UTC–4
Yesterday, the bulls failed to break through the resistance level of 1.1602. The struggle to accomplish this continues, so the situation has not undergone significant changes. The current week will be closed today. A strong rebound from the lower border of the weekly cloud will strengthen more the bullish mood. Moreover, uncertainty at the close of the week will help maintain current volatility. The nearest upward targets are set at 1.1649-64 (daily Fibo Kijun + historical level). A stronger resistance zone 1.1695 – 1.1719 (monthly Fibo Kijun + weekly Tenkan + final levels of the daily Ichimoku cross) is located above.
Meanwhile, the main bearish interest currently remains at the support levels of 1.1538 (lower border of the weekly cloud) – 1.1516 (upper border of the monthly cloud) – 1.1494 (medium-term monthly trend).
The advantage in the smaller timeframes remains on the bullish side, but they are trading in the correction zone for quite some time. At the moment, the support level of 1.1601 (central pivot level) is being tested. The weekly long-term trend is now at 1.1572. A consolidation will affect the possession of advantages and can serve as a basis for changing priorities. The upward targets can be noted at 1.1641 and 1.1658 (classic Pivot levels) today.
The pound rose to the resistance area again following its unsuccessful attempt yesterday. This is where the weekly levels of Fibo Kijun (1.3731) and Senkou Span A (1.3752) are combined, but the levels encountered are only the lower border of a wide resistance zone, followed by 1.3777 (daily cloud) and 1.3830 (weekly medium-term + monthly short-term trend).
The role of the nearest support in the current conditions belongs to 1.3661 (weekly Tenkan). We are closing the week today, so it is important for the bulls to maintain their reached positions.
The bulls have full advantage in the smaller timeframes. They already updated the high and resumes its growth. The next upward targets are located at 1.3767 – 1.3800 (classic pivot levels). Here, the key supports are at 1.3685 (central pivot level) and 1.3638 (weekly long-term trend). However, a consolidation below will change the current balance of power.
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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