05.02.202110:32 Forex Analysis & Reviews: Technical analysis recommendations for EUR/USD and GBP/USD on February 5

EUR/USD

The first working week of February is nearing completion. The bears were more active and productive this time. They continued their downward movement and reached the supports that were previously indicated near the lower border of the daily cloud (today the Senkou Span B is at 1.1956) and the weekly medium-term trend (1.1975). As a result of the meeting with the supports, another deceleration is possible, the formation of a rebound from the supports will bring back the pair to the area of 1.2064, where the daily short-term trend and the weekly level are now located. Overcoming and breaking the encountered support levels (1.1975-56) will open the way to the weekly Fibo Kijun (1.1886).

The bearish traders in the current situation retain the advantage and support of all the analyzed technical instruments. Thanks to this, they continue to develop a downward movement. The downside targets within the day are now the support of the classic Pivot levels 1.1931 – 1.1901 – 1.1845. If the currently emerging upward correction develops, the first important resistance level on H1 will be the central Pivot level (1.1987). The next significant milestone is located at 1.2048 (weekly long-term trend), on the way to it, you can note the first resistance of the classic Pivot levels R1 (1.2017).

GBP/USD

Yesterday, the final support of the daily golden cross (1.3604 – 1.3568) managed to defend the interests of the players for the increase. These levels served as the basis for the formation of a rebound and the return of the pair to the area of the daily short-term trend (1.3661). Today, we close the next working week. If the weekly candle again has the character of uncertainty, and at the moment this is exactly what is observed, then the market will still lack a clear leader and the situation with opportunities for players of all directions will remain.

Yesterday, after the decline, the pair returned to the area of attraction of the key levels of 1.3643-70 (the central Pivot level + the weekly long-term trend). It should be noted that these boundaries are now strengthened by the levels of the daily cross (1.3661-1.3640), so it is possible to slow down and stay in the zone of influence of the encountered levels for a longer time. With the active continuation of the rise, the classic Pivot levels will act as resistances within the day (1.3721 – 1.3775 – 1.3853). Consolidation under the key levels (1.3643-70) will change the current balance of power, returning the relevance to bearish sentiment and support 1.3589 (S1) – 1.3511 (S2) – 1.3457 (S3).

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