23.03.202112:26 Forex Analysis & Reviews: Technical analysis recommendations for EUR/USD and GBP/USD on March 23

EUR/USD

Yesterday, a pullback was observed again from the support level of 1.1886 (weekly Fibo Kijun) and a return to the center of the recent consolidation zone. As a result, the current situation remains around the same borders of 1.1975-91 (weekly Kijun + daily Fibo Kijun) - 1.1886 (weekly Fibo Kijun). The previous pivot points outside this range are also retained. Here, the downtrend targets are set at 1.1821 - 1.1762 (daily target for cloud breakout + monthly short-term trend), while the upward targets are at 1.2039-64 (daily and weekly cross levels).

Bullish traders have the main advantage in the smaller time frames, despite the current decline. We can note the next intraday upward targets set at the classic pivot levels of 1.1962-1.1990-1.2034. The levels are strengthened by the resistance levels (1.1975-91) in the upper time frames. Now, if the key support levels of 1.1918-20 (central pivot level + weekly long-term trend) in the smaller time frames are overcome, this will change the current balance of power, which may strengthen the bearish mood. In order to get a significant result, the bears will have to break through not only the support of the classic pivot levels (1.1890-1.1846-1.1818), but also the levels (1.1886 - 1.1821) in the bigger period.

GBP/USD

The pound sterling failed to implement an impressive movement yesterday after opening the market with a downward gap. But at the same time, it continues to maintain its position below the wide resistance zone 1.3904 - 1.3954 - 1.4008 - 1.4062 (daily cross + weekly levels). Today, the strength, importance, and location of this zone persists. If there will be a bearish activity, the daily cloud 1.3713 (upper border) and 1.3672 (weekly Fibo Kijun) will serve as downward pivot points.

The bears retain their advantage and are currently being supported by the analyzed technical instruments. However, they still cannot continue their downward movement. Now, the first support level of 1.3823 has been tested. In case of a decline, other support levels can be noted such as 1.3791 (S2) and 1.3764 (S3).

On H1, the key levels are forming their resistance today, which are located at 1.3850 (central pivot level) and 1.3892 (weekly long-term trend). If the bulls successfully break through these levels, then the current situation will change. Further, they will most likely be successful when they test the resistance levels of 1.3904 - 1.3954 - 1.4008 - 1.4062.

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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.