16.03.202113:52 Forex Analysis & Reviews: Technical analysis recommendations for EUR/USD and GBP/USD on March 16

EUR/USD

There is a continuous uncertainty prevailing in the market. The pair remains under a cluster of resistances, led by a weekly medium-term trend (1.1975). Once these resistance levels are broken through, the path will open up to the levels of 1.2039-64 (daily and weekly cross levels), and further to the daily cloud.

However, if the bearish activity returns, it will be possible to break through the support level of 1.1886 (weekly Fibo Kijun) and update the low of 1.1836. Bears' further opportunities will depend on the result of interaction with the support zone set at 1.1821 - 1.1762 (daily target for cloud breakout + monthly short-term trend).

The situation in the smaller time frames remains the same. The pair is still in the attraction and influence zone of key levels, which are currently combined in the area of 1.1935-29 (central pivot level + weekly long-term trend). A decline below the levels will favor the bears, while a consolidation above which will strengthen the opponent. It can be noted that the supports of the classic pivot levels are seen at 1.1903 - 1.1879 - 1.1847. In turn, the resistances of the classic pivot levels are at 1.1959 - 1.1991 - 1.2015.

GBP/USD

Bearish traders decided to take advantage of the bulls' failure to break through the daily dead cross. They move below the attraction and support zone of the area of 1.3904 - 1.3880 (weekly and daily Ichimoku levels) and update the low (1.3777), continuing the downward trend. If they successfully leave this area, and consolidate below the current extremum of the movement (1.3777), new downward prospects can be expected, one of which is testing the next downward target set at 1.3642 (weekly Fibo Kijun + daily cloud).

The favor in the smaller time frames is currently on the side of bears, which is supported by all analyzed technical instruments. The pair has consolidated below the key levels, which are now forming the main resistance zone at 1.3900-15 (central pivot level + weekly long-term trend) in the H1 chart.

On the contrary, a price consolidation above these resistances will bring the bulls back their advantage. If this happens, we can note the pivot points set at 1.3948 - 1.3997 - 1.4045 (classic pivot levels). As for the bears, their primary task is to update the low (1.3777). Here, the intraday pivot points are the support levels of 1.3803 (S2) and 1.3754 (S3).

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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.