29.12.202112:42 Forex Analysis & Reviews: Technical analysis recommendations of EUR/USD and GBP/USD on December 29, 2021

GBP/USD

Yesterday, the pair updated its high but was not able to close the day at the reached levels above. As a result, the nature of the daily candle supports the slowdown more than the continuation of growth. The current situation is now being influenced by weekly levels of 1.3429 - 1.3475. Further prospects will be determined based on the results of the interaction. The nearest support levels are set at 1.3358 (weekly Senkou Span B) and 1.3346 - 1.3311 - 1.3275 (daily cross).

The pair is in the correction zone of the smaller timeframes. The bears managed to go below the central pivot level (1.3435), so their target now is the weekly long-term trend (1.3400). The nearest support is located at 1.3410 (S1). A consolidation below and reversal of moving averages can affect the current distribution of forces. If the decline continues, the next pivot points will be 1.3388 and 1.3363 (classic pivot levels). However, if the key levels here are able to hold the situation and keep the bullish interests, then a consolidation above the level of 1.3435 will allow us to expect the recovery of the upward trend (1.3461). The pivot points to be considered are 1.3482 - 1.3504 (resistance of the classic pivot levels).

EUR/USD

Consolidation is maintained. The euro continues to hit daily support and the monthly level of 1.1290. It is possible that there will be no changes amid the turmoil that accompanies the holiday, so important, large-scale, and long-lasting changes are most likely to occur next year. However, we will observe the closing of the week, month, and year this Friday.

The closest targets for the bulls are now 1.1383 - 1.1360 (consolidation highs) and 1.1403 (weekly short-term trend). As for the bears, the minimum consolidation extremum (1.1186) continues to be a significant border.

The pair fell below the key levels in the smaller timeframes, which revived the possibility to strengthen the bearish mood. The intraday downward pivot points are the support levels of the classic pivot levels (1.1288 - 1.1267 - 1.1244). On the other hand, key levels are serving as resistances set at 1.1311-19 (central pivot level + weekly long-term trend). A consolidation above can change the current balance of power again, while it will be better to re-evaluate the situation after.

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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.