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25.05.202312:10 Forex Analysis & Reviews: EUR/USD and GBP/USD: Technical analysis for May 25

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EUR/USD

Higher timeframes

Bears have set new lows and continue to develop a downward movement. On their way, they face support from the weekly medium-term trend (1.0693). Overcoming this level will open up possibilities for further decline towards an important and wide zone where significant reference points have accumulated. A halt or a rebound from 1.0693 could signal the end of the downward process and bring bullish activity back into the market. In this case, the nearest reference point would be the area that combines daily and weekly levels: 1.0787 – 1.0796 – 1.0811.

H4 – H1

A bearish trend is also observed on the lower timeframes. Bears maintain the main advantage due to resistance from the weekly trend. Currently, the support of the S2 classic pivot points (1.0714) is being tested, with the next reference point being the S3 level. Key levels today are holding the defense at the boundaries of 1.0767 – 1.0787 (central pivot point + weekly long-term trend).

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GBP/USD

Higher timeframes

Currently, the pair is testing the support levels of 1.2344 – 1.2361 (weekly level + upper boundary of the daily cloud). A rebound and a recovery of positions could bring the pound back into the zone of recent consolidation, with the center of attraction around the weekly short-term trend (1.2448). Breaking through the encountered levels will pass the baton to the supports located below: 1.2302 (monthly medium-term trend) – 1.2240 (weekly medium-term trend) – 1.2173 (lower boundary of the daily cloud).

H4 – H1

Currently, the bearish trend continues to develop. The intraday bearish reference points today are the supports of the classic pivot points at 1.2322 – 1.2284 – 1.2211. The key levels on the lower timeframes are currently forming resistances in case of a full-blown correction, situated around 1.2395 – 1.2413 (central pivot point of the day + weekly long-term trend). Consolidation above these levels could shift the current balance of power, opening the way to bullish reference points at 1.2433 – 1.2506 – 1.2544 (resistances of the classic pivot points).

The technical analysis of the situation uses:

Higher timeframes - Ichimoku Kinko Hyo (9.26.52) + Fibo Kijun levels

Lower timeframes - H1 - Pivot Points (classic) + Moving Average 120 (weekly long-term trend)

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