27.05.202113:15 Forex Analysis & Reviews: Technical analysis and recommendations for EUR/USD and GBP/USD on May 27

EUR/USD

The second attempt to break through the resistance level of 1.2243 did not bring positive results for the bulls – the daily rebound occurred and the euro returned to the previous consolidation zone. It is worth noting that the breakdown of the historical level of 1.2243 opens the path to the following upward targets: the target for the breakdown of the daily Ichimoku cloud (1.2345-1.2416) - the maximum extremum (1.2349). A slowdown and further development of the downward correction will allow the pair to interact with a fairly wide support zone. The first support set at 1.2196 (daily short-term trend) is currently being tested. We can note the other support levels at 1.2150-59 (daily Fibo Kijun + historical level) - 1.2126 (daily medium-term trend) - 1.2093 - 1.2102 (daily Fibo Kijun + weekly Fibo Kijun).

The formation of the daily rebound contributed to the breakdown of the bulls' key levels, which now combined their efforts in the area of 1.2212-16 (central pivot level + weekly long-term trend). If the bearish sentiment continues to intensify, the support of the classic pivot levels at 1.2162 - 1.2131 - 1.2081 will be considered.

In turn, the restoration of bullish positions and their next consolidation above the key levels (1.2212-16) will most likely lead to a new struggle for the historical resistance (1.2243) in the higher time frames. The result of this interaction will determine the further opportunities of the bulls. Today, the resistances of the classic pivot levels are seen at 1.2243 - 1.2293 - 1.2324.

GBP/USD

The pair continues to be below the important historical border of 1.4240. Its breakdown will allow us to restore the upward trend in the higher period. However, the development and strengthening of bearish sentiments are now holding back the support and attraction of the fulfilled daily target of 1.4090 - 1.4137 and the daily short-term trend (1.4154). Further, the bears' interests will be aimed at breaking through the 1.4068 (daily Fibo Kijun) - 1.4017-08 (daily Kijun + historical level).

The pound returned in the smaller time frames to retest to the key levels of 1.4134-52 (central pivot-level + weekly long-term trend) after testing the support level of 1.4094. A consolidation above which will return the main advantage to the bulls' side in the H1 chart. Their intraday targets are located at 1.4157 - 1.4197 - 1.4220.

On the other hand, a movement below the key levels (1.4134-52) leaves room for further bearish strength. Today's supports of the classic pivot levels are noted at 1.4094 - 1.4071 - 1.4031.

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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.