Support and resistance are core concepts in forex trading, and they form the foundation for technical analysis. Let me break it down clearly:

What is Support?
Definition: A price level where a currency pair tends to stop falling and bounce back up.
Think of it as a "floor" that prevents price from dropping further.
Why it works: At support, traders believe the asset is undervalued, so buying pressure increases.
Example: If EUR/USD keeps falling to 1.0500 but each time it bounces back up, that level is support.

What is Resistance?
Definition: A price level where a currency pair tends to stop rising and reverse downward.
Think of it as a "ceiling" that stops the price from going higher.
Why it works: At resistance, traders believe the asset is overpriced, so selling pressure increases.
Example: If GBP/USD climbs to 1.2800 multiple times but fails to break above, that’s resistance.

Key Points to Remember
Support can turn into resistance (and vice versa) when price breaks through.
Example: If price breaks below support, that level may act as new resistance later.
Not always exact numbers – they’re usually zones rather than precise lines.
Stronger when tested multiple times – the more often a level holds, the more significant it becomes.
Timeframe matters – support/resistance on higher timeframes (daily, weekly) are usually more reliable than on short timeframes.