01.06.202113:45 Forex Analysis & Reviews: Technical analysis and recommendations for EUR/USD and GBP/USD on June 1, 2021

EUR/USD

Looking at the monthly time frame, the bulls managed to close the month of May very positively. However, uncertainty continues to dominate the situation in the smaller time frames. The previously mentioned upward pivot points retain their location – the historical level (1.2243) - the target for the breakdown of the daily Ichimoku cloud (1.2345 - 1.2416) - the maximum extremum (1.2349).

The downward pivot points have also remained in place for a long time, forming a fairly wide zone. The nearest support levels are set at 1.2150-59 (daily Fibo Kijun + historical level) - 1.2126 (daily medium-term trend) - 1.2093 - 1.2102 ( daily Fibo Kijun + weekly Fibo Kijun) - 1.2027 (weekly medium-term trend). At the moment, the daily short-term trend (1.2199) is acting as the center of gravity.

The advantage in the smaller time frames is now on the bulls' side. In the hourly chart, they consolidated above the key levels 1.2213-11 (central pivot level + weekly long-term trend). And although this advantage is quite weak with daily consolidation and weekly uncertainty, it is still present on the side of bullish traders. The intraday pivot points to develop the upward movement are the resistance of the classic pivot levels 1.2244 - 1.2262 - 1.2293.

In turn, a consolidation below the level of 1.2213-11 will shift the advantage on the H1 chart in favor of strengthening bearish sentiments. We can note the support levels at 1.2195 (S1) - 1.2164 (S2) - 1.2146 (S3).

GBP/USD

The pound was able to close May with a candlestick that is controlled by bullish sentiments, forming a close outside the monthly Ichimoku cloud. As a result, the main task for June will be to consolidate in the bullish zone relative to the cloud and continue the upward trend. Now, bullish traders are testing the February high (1.4240). The breakdown of this resistance will restore the upward trend and allow bullish traders to consider new prospects, so the result of the interaction is important in the near future. Yesterday's role and location of supports did not change - 1.4169 (daily short-term trend) - 1.4137 - 1.4090 (worked-out target for the breakdown of the daily cloud).

The pair approached the resistance level of 1.4250 (R2) in the smaller time frames. The next intraday resistance can be noted at 1.4280 (R3). At present, the downward correction is developing. Today's key supports are seen at 1.4196-70 (central pivot level + weekly long-term trend) and are strengthened by the daily short-term trend (1.4169). A consolidation below in the daily time frame will change the balance of power not only in the lower period but will also lead to the development and formation of a daily rebound from the encountered resistance of 1.4240 in the higher ones.

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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.