31.05.202113:45 Forex Analysis & Reviews: Technical analysis and recommendations for EUR/USD and GBP/USD on May 31

EUR/USD

The bears failed to achieve a convincing result at the close of last week. The pair remained in the consolidation zone while maintaining uncertainty. The center of attraction and influence is still the daily short-term trend (1.2199). The nearest support zone has also retained its location and currently consists of the following levels 1.2150-59 (daily Fibo Kijun + historical level) - 1.2126 (daily mid-term trend) - 1.2093 - 1.2102 (daily Fibo Kijun + weekly Fibo Kijun) - 1.2027 (weekly medium-term trend). The breakdown of the historical level of 1.2243 will open the way towards the upward targets – the target for the breakdown of the daily Ichimoku cloud (1.2345 - 1.2416) and the maximum extremum (1.2349).

The uncertainty in the higher time frames is clearly seen in the lower ones. The pair trades in the attraction zone of key levels, which are in a horizontal position. There is no directional movement with a consistent formation of highs and lows. Today, the key H1 levels can be noted at 1.2211 (weekly long-term trend) and 1.2176 (central pivot level).

The resistance of the classic pivot levels 1.2219 - 1.2248 - 1.2291 serves as upward intraday pivot points, while the downward targets are set at 1.2147 - 1.2104 - 1.2075.

GBP/USD

Last week's consolidation was maintained. As a result, the pound remained at its initial positions, which are in the middle – the daily Tenkan (1.4162) and the worked-out target for the breakdown of the daily cloud (1.4137 - 1.4090). A movement beyond these borders during bearish activity will open the way to the area of 1.40 (historical level + daily Kijun) and then to the strong border of 1.3950, which combines many strong levels of different halves. For bullish traders, their main task is still to break through the level of 1.4240 (historical extreme). Updating this level and consolidating above it will open up new prospects.

The pair in the smaller time frames remain uncertain, continuing to move in the attraction and influence zone of key levels, which combine their efforts today in the area of 1.4176-60 (central pivot level + weekly long-term trend). Currently, the supports for classic pivot levels are seen at 1.4145 - 1.4104 - 1.4073, while the resistances are at 1.4217 - 1.4248 - 1.4289.

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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.