03.05.202113:30 Forex Analysis & Reviews: Technical analysis and recommendations for EUR/USD and GBP/USD on May 3, 2021

EUR/USD

At the close of the week and month, the bulls failed to maintain optimism. As a result, a bearish weekly candlestick and a long upper shadow on the monthly time frame formed. The daily result also does not inspire hopes for a quick recovery of the bulls.

The current attraction is the weekly medium-term trend (1.2027). The nearest significant pivot point in the recovery of bullish positions is now the area of 1.2072-99 (daily Tenkan + weekly Fibo Kijun). If the downward movement continues, it will lead to interaction with a fairly wide and strong support zone, which unites various levels (1.2003 - 1.1977 - 1.1947 - 1.1927) in the higher time frames.

The advantage in the smaller time frames is on the bears' side. Today, the intraday downward targets are set at 1.1982 - 1.1944 - 1.1872 (classic pivot levels). If an upward correction develops, the key levels in the lower periods will meet the bulls at the borders of 1.2054 (central pivot level) and 1.2086 (weekly long-term trend). A consolidation above which can change the balance of forces in the hourly TF.

GBP/USD

Last month, the pound sterling tested an important resistance (upper border of the monthly cloud) Now, it is located at 1.3958, but it failed to reach a positive result, which allowed it to enter the bullish zone relative to the cloud. Currently, the pair is trading in the area of accumulation of various support levels (1.3842-06). A consolidation below and leaving the attraction zone of these levels will allow us to further decline. In this case, the bears' interests will be directed to 1.3672-69 (nearest minimum extreme + the weekly medium-term trend).

The bears currently have the main advantage and so, they recently set a new low. Today, we can note the supports of the classic pivot levels at 1.3760 - 1.3703 - 1.3605. However, the bulls are trying to develop an upward correction. The key levels in the smaller time frames are waiting for the pair in the area of 1.3858-99 (central pivot level + weekly long-term trend). So, a consolidation above and reversal of moving averages will affect the distribution of forces, making the main task to restore the upward trend. If this happens, the bulls need to update the maximum extremes (1.3975 - 1.4008).

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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.