27.07.202114:50 Forex Analysis & Reviews: Technical analysis and recommendations for EUR/USD and GBP/USD on July 27, 2021

EUR/USD

The bulls tried to develop an upward correction again yesterday. An obstacle to the implementation of these plans was the unification of the resistances of the bearish cloud and the daily short-term trend (1.1802) in the H4 chart. A consolidation above the encountered obstacles will strengthen the bullish positions and will allow them to consider new upward prospects. In this situation, the next task will be eliminating the Ichimoku daily dead cross of 1.1837 - 1.1864 - 1.1890. After that, attention will be focused on retesting the recently broken weekly and monthly levels, which now form a wide resistance zone within 1.1920 - 1.2050.

The previously noted downward pivot points of 1.1695 - 1.1684 (monthly Fibo Kijun + the first target of the daily target for the breakout of the cloud) and 1.1602 - 1.1619 (minimum extremum of the past + 100% working out of the daily target) retain their location today. The relevance will return to them when the downward trend is restored (1.1752 minimum extreme).

During the previous day, the bullish traders still managed to consolidate above the key levels of the smaller time frames, but the resistance in the higher periods did not allow the advantage to develop. At the moment, the pair has returned to the attraction and influence area of key levels, which are now set in the range of 1.1783-94 (central pivot level + weekly long-term trend). Trading above the levels gives the initial advantage to the bulls on the H1 chart. The intraday upward pivot points can now be noted at 1.1825 - 1.1847 - 1.1878 (classic pivot levels). A consolidation below them will strengthen the bearish mood. The immediate goal is to restore the downward trend (1.1752).

GBP/USD

The bulls are struggling for advantages. They are currently busy eliminating the daily dead cross of Ichimoku (1.3836 final level). The cross is strengthened by the weekly level (1.3824), which complicates the task. The breakdown of which will allow us to consider the fairly wide resistance zone (1.3910-90) as further upward pivot points, which combined many important levels in the bigger time frames – both the daily cloud, the target for the breakdown of the H4 cloud, and the exit from the monthly cloud, and weekly levels. The borders of the Ichimoku daily cross, passed the day before – 1.3785 (Kijun) and 1.3735 (Tenkan), are currently serving as support.

The key advantage in the smaller time frames is currently on the bulls' side. However, we are witnessing the development of a downward correction, which has already contributed to a change in preferences among the analyzed technical indicators. At the moment, there is a struggle for the first key support level on the H1 chart – 1.3794 (central pivot level), then the support of the weekly long-term trend (1.3730) will defend bullish interests. The weekly long-term trend combines its efforts today with the daily short-term trend (1.3735). Therefore, the breakdown of this line of reinforced position is not desirable for the bulls.

***

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.