05.07.202113:15 Forex Analysis & Reviews: Technical analysis and recommendations on EUR/USD and GBP/USD on July 5

EUR/USD

The attempt to break through the supports and Friday's low (1.1847) was unsuccessful. As a result, the weekly candle has a long lower shadow, and the daily candle has formed the prerequisites for the development of the rebound from the encountered obstacle. To further restore the bullish positions, several strong borders can be distinguished at once - 1.1890 - 1.1920 - 1.1936 (daily Tenkan + weekly levels) - 1.1975-85 (monthly Tenkan + lower border of the daily cloud + weekly Kijun) - 1.2035-51 (daily Kijun + weekly levels).

On the other hand, the update of the lows (1.1847 - 1.1806) and a sharp consolidation below will restore the daily downward trend and make the downward targets 1.1704 - 1.1695 (previous minimum extremum + monthly Fibo Kijun) and 1.1619 - 1.1684 (target for the breakdown of the daily cloud) relevant again.

The bears continue to have the main advantage in the smaller time frames. Nevertheless, the development of the upward correction has led to the fact that the bulls took possession of the central pivot level (1.1848) and are now using it as support. Further, the resistance of the weekly long-term trend, which is currently set at 1.1878, will be greatly important in changing the current balance of forces. Moreover, we can note the resistance levels of 1.1889 - 1.1916 - 1.1957 and support levels of 1.1821 - 1.1780 - 1.1753 as among other pivot points for today's intraday trading.

GBP/USD

Last week, the bears tried to restore the daily downward trend. The nearest pivot point is now the downward target for the breakout of the cloud (1.3636-98). The tested supports 1.3786 - 1.3754 (minimum extremum + final level of the weekly gold cross) formed a pullback on the daily time frame. In the current situation, it will be possible to discuss the development of an upward direction after breaking through the nearest resistances of 1.3850-65 (weekly medium-term trend + daily short-term trend).

The pound in the smaller time frames is busy breaking through the weekly long-term trend (1.3826). Its breakdown on the H1 chart will provide an advantage in favor of the bulls. The development of the situation will rest on the resistance (1.3850-65) in the bigger time frames, while the intraday upward targets will be 1.3870 - 1.3913 - 1.3983 (resistances of the classic pivot levels).

If the mood and priorities change so much that the bearish traders are able to defend the weekly long-term trend (1.3826) and regain the central pivot level (1.3800), then the main task on H1 will be to exit the zone of the current growth and update the low (1.3731).

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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.