28.07.202113:40 Forex Analysis & Reviews: Technical analysis and recommendations for EUR/USD and GBP/USD on July 28, 2021

EUR/USD

The bulls managed to close the previous day above the daily short-term trend, while they successfully test the next resistance of the daily cross at 1.1837 (Fibo Kijun). And although the nature of the daily candle does not inspire much optimism, we can expect further development of the daily upward movement if the positions are maintained and the positions are securely fixed at the reached peaks. The nearest resistances are the levels of the daily dead cross 1.1837 - 1.1864 - 1.1890 and above it is where the most guarded and widest zone is located, uniting the levels (1.1920 - 1.2051) of the higher time frames.

Today, the downward pivot points remained unchanged – 1.1752 (minimum extremum) - 1.1695 - 1.1684 (monthly Fibo Kijun + the first target of the daily target for the breakout of the cloud) - 1.1602 - 1.1619 (minimum extremum of the past + 100% working out the daily target).

The bulls continue to be above the key levels on the H1 time frame, which act as support levels and contribute to the preservation of the main advantage on the bullish side. However, we are currently seeing a downward correction and testing of key levels, which are set at 1.1809 (central pivot level) and 1.1790 (weekly long-term trend). If the bulls manage to stay above the levels, then they will likely update the daily maximum again. The intraday upward pivot points are located at 1.1847 - 1.1880 - 1.1918 (classic pivot levels).

On the contrary, a consolidation below the key levels (1.1809-1.1790) will lead to a change in the balance of forces on the H1 chart. If so, the main target of the bears will be to restore the downward trend (1.1752). In case of a further decline, we can note the support of the classic pivot at 1.1738 and 1.1705 today.

GBP/USD

Last week's potential has not gone unnoticed. Using it, the bulls implement a rise. The nearest pivot points are located at 1.3906-10 (weekly Tenkan and Kijun), and then the 1.3960-90 area (daily cloud + upper border of the monthly cloud + weekly Fibo Kijun + target H4). Meanwhile, the support levels are the overcame levels of 1.3824-36 (Fibo Kijun daily and weekly) - 1.3785 (daily medium-term trend) - 1.3733 (daily short-term trend).

The bulls currently have the main advantage. The continuation of the trend movement will allow us to consider rising to the upward pivot points. These are the resistances of the classic pivot levels (1.3923 - 1.3972 - 1.4050). The development of the current correction will lead to the testing of key levels – 1.3845 (central pivot level) and 1.3776 (weekly long-term trend). However, a consolidation below will change the current balance of power in the smaller time frames and will require a new assessment of the situation.

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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.