19.05.202010:42 Forex Analysis & Reviews: Technical analysis recommendations for EUR/USD and GBP/USD on May 19

Economic calendar (Universal time)

The pound statistics published today turned out to be quite weak, and so we are expecting data on economic sentiment in Germany that could support the euro. Later in the afternoon, news from across the ocean will be released.

12:30 the number of issued building permits

14:00 speech by the head of the Fed

EUR / USD

Indecision and the lack of a bearish result led the players to increase to a new attempt to change the situation. Now, their main task is to consolidate above past deterrent resistance, which were the weekly short-term trend (1.0893) and the daily cross (1.0907 - 1.0873). At the same time, further upward reference points can be noted at 1.0965 - 85 (lower border of the daily cloud + weekly Fibo Kijun) and 1.1067-88 (accumulation of strong levels).

Another rise above the key levels of the lower halves inspired players to rise to new acts. Now, the advantage is completely on the side of the bulls. The upward reference points within the day are the resistance of the classic Pivot levels 1.0961 - 1.1007 - 1.1088. The key supports responsible for the distribution of forces on H1 are today at 1.0880 (central Pivot level) and 1.0837 (weekly long-term trend). Consolidating below will level out all yesterday's gains of the players to increase and return the pair to the previous consolidation zone.

GBP / USD

Players to rise stopped the decline, forming a candle pattern "Penetrating lines" at the beginning of the correction. As a result, the pair, on the first day of the week, returned to retest the levels passed the day before. Further development of the situation now depends on the outcome of this reversal. If the players to decline are able to limit the correction and form a rebound from the previously completed levels of 1.2214 (weekly Fibo Kijun) - 1.2269-1.2360 (daily cross of Ichimoku) - 1.2305 (daily cloud), then they can gain the strength necessary for breakdown of a significant support zone 1.2047 - 1.1970 (weekly short-term trend + historical level). On the contrary, if the players on the increase are able to return the levels indicated for the retest (1.2214 - 1.2305 - 1.2360), then most likely we will see the reversal candlestick pattern "Penetrating Lines" not only on the daily, but also on the weekly time frame.

An upward correction has been developed. To date, the players on the increase have managed to reach certain results. Now, in order to maintain achievements, it is necessary to stay above the weekly long-term trend (1.2210) and deploy the moving average. A return to the key levels of the lower half 1.2210 - 1.2164 (weekly long-term trend + central pivot level) will deprive players of yesterday's gains and will be a good reason for returning bearish activity.

Ichimoku Kinko Hyo (9.26.52), Pivot Points (classic), Moving Average (120)