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16.10.202410:11 Forex Analysis & Reviews: EUR/USD and GBP/USD October 16 – Technical Analysis

Relevance up to 03:00 2024-10-17 UTC--4
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EUR/USD

Exchange Rates 16.10.2024 analysis

Higher Time Frames

The bears continue to push downward, working below a consolidated cluster of levels from different time frames (1.0908 – 1.0919). As a result, the 1.0908-19 area remains the most significant challenge for the bulls in their attempt to regain positions. If the downward movement continues, bearish targets can be noted at 1.0863 – 1.0850 – 1.0811 (weekly cloud + the final level of the weekly Ichimoku cross).

Exchange Rates 16.10.2024 analysis

H4 – H1

In the lower time frames, the bears continue developing a downward trend. Support levels of the classical Pivot Points (1.0877 – 1.0862 – 1.0842) are in place to strengthen bearish sentiment during the day. If priorities shift and an upward correction develops, the market's attention will turn to key levels – the central Pivot Point (1.0897) and the weekly long-term trend (1.0924). A break and reversal of the trend could change the current balance of power. Today's upward targets are 1.0932 (R2) and 1.0947 (R3).

***

GBP/USD

Exchange Rates 16.10.2024 analysis

Higher Time Frames

The bears were the first to break out of the uncertainty around the upper boundary of the daily cloud (1.3070) and demonstrate their potential. They are currently testing the weekly support level (1.2999), with the following targets at 1.2940 (lower boundary of the daily cloud) and 1.2866 (weekly mid-term trend + monthly short-term trend). Just below these supports lies the monthly cloud (1.2930 – 1.2797).

Exchange Rates 16.10.2024 analysis

H4 – H1

In the lower time frames, the bears made a sharp move, changing the existing balance of power and breaking through two supports of the classical Pivot Points. As a result, only one downward target remains within the day at S3 (1.2969). Once this is broken, the bears' focus will shift to targets on the higher time frames (1.2940 – 1.2930 – 1.2866 – 1.2797). For the bulls, the only option under the current conditions is to neutralize all of the bears' achievements and return to the key levels in the 1.3068-63 range (central Pivot Point + weekly long-term trend), but this scenario seems unlikely at the moment.

***

Technical Analysis Tools Used:

  • Higher time frames: Ichimoku Kinko Hyo (9.26.52) + Fibonacci Kijun levels;
  • Lower time frames: H1 – Pivot Points (classic) + 120-period Moving Average (weekly long-term trend).
Evangelos Poulakis
Analytical expert of InstaForex
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