07.12.202113:32 Forex Analysis & Reviews: Technical analysis recommendations of EUR/USD and GBP/USD on December 7, 2021

EUR/USD

The situation has not undergone significant changes again. The euro remains consolidating around the monthly level of 1.1290 and is not in a rush to leave the uncertainty and expectations zone. Therefore, it can be noted that the target pivot points retain their location and significance. For the bears, their current task is to update the low (1.1186), recover the trend, and decline to the downward weekly target on the breakout of the cloud (1.0960 - 1.0806). As for the bulls, it is important for them to break through the nearest daily resistances of 1.1351 (Fibo Kijun) and 1.1401 (Kijun) in order to test the levels of 1.1439-55-92 line (weekly short-term trend + monthly cloud and medium-term trend).

The favor in the smaller timeframes is still on the bearish side, as trading is carried out below the key levels, which now hold the defense at 1.1288 (central pivot level) and 1.1309 (weekly long-term trend). To continue the intraday downward movement, we can consider the pivot points – the support of the classic pivot levels. The first level (1.1263) is being tested now, then 1.1241 and 1.1216. Changing priorities and consolidating above the key levels (1.1288 – 1.1309) will return the relevance to the resistances of the classic pivot levels, the pivot points will be 1.1335 and 1.1357.

GBP/USD

The bears failed to immediately take advantage of the potential of the past week and continue the decline. The pound remained tied to the attraction and influence zone of 1.3248 (the lower limit of the weekly cloud) - 1.3281 (the daily short-term trend). The persistence of uncertainty will develop consolidation. In the case of bears' activity, their interests will rush to the level of 1.3164 (monthly Fibo Kijun). But if bullish sentiment increases, attention will be directed to the resistance of the daily Ichimoku cross of 1.3386 (Fibo Kijun) and 1.3445 (Kijun).

The upward correction in the smaller timeframes led to a struggle for key levels, which can be noted at 1.3254 (central pivot level) and 1.3282 (weekly long-term trend) today. A consolidation above and reversal of moving averages can change the current balance of power in favor of the bulls. The resistance of the classic pivot levels (1.3292 - 1.3323 - 1.3361) will serve as upward benchmarks to resume growth within the day. However, in the event that the resistance of the key levels maintains the bearish advantages, then we can expect new bearish activity after the formation of the rebound. Today, the support levels on the hourly chart are set at 1.3223 - 1.3185 - 1.3154 (classic pivot levels).

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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.