24.01.202212:36 Forex Analysis & Reviews: Technical analysis recommendations of EUR/USD and GBP/USD on January 24, 2021

EUR/USD

Uncertainty dominates. A new consolidation emerged on the daily timeframe, while the pair returned to the previous borders, namely to the influence and attraction zone of important levels at 1.1353 - 1.1290 (weekly short-term trend + monthly level), which had already been significant and had shown themselves earlier. The result of interaction will determine the further development of events. It should be noted that uncertainty and consolidation may drag out again in time, so it is currently difficult to predict processes in time.

For the bears, the next pivot point is 1.1186 (minimum extremum), and as for the bulls, the area of 1.1439-92 (monthly levels + weekly Fibo Kijun + the upper limit of the daily cloud) will be interesting after breaking through the resistance of the daily cross (1.1359 - 1.1392).

The main advantage in the smaller timeframes continues to be on the bearish side. However, there is no clear and stable preponderance of forces for a long time. The pair has been trading in the resistance zone of the key levels for a long time. They are currently located at 1.1353-35 (central pivot level + weekly long-term trend). It should be noted that trading below these levels will allow us to maintain a bearish advantage. The downward pivot points to continue the decline are the support of the classic pivot levels (1.1310 - 1.1276 - 1.1251).

In turn, a consolidation above the key levels and reversing the moving average will change the balance of power in the smaller timeframes, and as a result, we can expect testing the upward levels of 1.1369 - 1.1394 - 1.1428 (resistance of the classic pivot levels).

GBP/USD

The bears formed a rebound candle combination last week as a result of testing important levels of 1.3669 (weekly Fibo Kijun) - 1.3704 (monthly Tenkan). Today, the pair has already updated the previous week's low. The main task facing the bulls now is to confirm and implement the formed rebound. The borders of the nearest supports on the bears' path in the current situation can be noted at 1.3528 (daily Fibo Kijun) - 1.3497 (upper limit of the daily cloud) - 1.3454-67 (accumulation of weekly and daily levels).

The advantage in the smaller timeframes is now entirely owned by the bears, who are reaching new lows. At the moment, the first support of the classic pivot levels (1.3530) is being tested, followed by 1.3509 and 1.3474. The key levels in the smaller timeframes are acting as resistances at 1.3565 (central pivot level) and 1.3605 (weekly long-term trend).

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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.