07.09.202112:45 Forex Analysis & Reviews: Technical analysis recommendations of EUR/USD and GBP/USD on September 7

EUR/USD

The previous day did not differ in activity and effectiveness. There were no noticeable changes in the situation. The bearish traders failed to reliably confirm and develop the rebound from the weekly resistance level (1.1894), which was formed on Friday. As a result, the main conclusions and expectations, and the location of the targets, remain the same.

It is important for the bulls to break through the weekly Fibo Kijun (1.1894) for the direction to open to the level of 1.1965 (weekly Kijun) - 1.2010 (weekly Senkou Span A + monthly Tenkan) - 1.2036 (weekly Fibo Kijun). As for the bears, the continuation of the decline lies through 1.1840 (the lower border of the daily cloud) - 1.1815-22 (daily levels) - 1.1787 (weekly short-term trend).

The pair is in the correctional zone in the smaller time frames. The analyzed technical indicators continue to support the development of the downward correction. Nevertheless, the main advantage still remains on the bullish side, as key levels continue to act as supports and defenders of bullish interests. They are now joining forces around 1.1871 (central pivot level) and 1.1853 (weekly long-term trend). A consolidation below and reversal of moving averages can change the balance of power. Other pivot points include support (1.1840 - 1.1823) and resistance (1.1885 - 1.1902 - 1.1916) of the classic pivot levels.

GBP/USD

The pair continues to remain in the attraction and influence zone of important levels 1.3830 - 1.3848 (the final level of the daily cross + weekly Fibo Kijun + monthly Tenkan). The bulls took a break, while their opponent is trying to take control of the situation. If the bearish moods strengthened and the decline is implemented, then we can note the nearest supports 1.3778 (weekly Tenkan + daily cross + lower border of the daily cloud) and 1.3737 (the final border of the daily cross).

The downward correction continues to develop. The bearish traders started testing the key support for the lower timeframes at 1.3808 (weekly long-term trend). The breakdown of the moving average and its reversal can inspire the bears to new levels. The next intraday bearish targets are located at 1.3790 and 1.3763 (classic pivot levels). If testing the weekly long-term trend (1.3808) ends with a rebound and at the same time, the central pivot level (1.3839) returns to the bulls, then a new attempt will most likely be made to leave the attraction zone (1.3830-48 ) of the higher time frames. The bulls will be able to do this on the hourly time frame by overcoming the resistance levels of 1.3861 - 1.3888 - 1.3910 (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.