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Technical analysis recommendations of EUR/USD and GBP/USD on January 19, 2021

EUR/USD

The encountered support of the daily short-term trend has remained far behind. The decline continued and helped the price to return to the former consolidation zone, where the attraction and influence are exerted by 1.1335 – 1.1290 (weekly short-term trend + monthly level). At the moment, the situation depends on the process of interaction with these levels – possible new slowdown and resumption of trading in the consolidation zone. If the bears have enough strength to continue the decline and go beyond the limits of consolidation (1.1186 minimum extremum), then the weekly downward trend will be restored, and the weekly target for the breakout of the cloud will become the main downward pivot point again.

The bears retained yesterday’s advantage in the smaller timeframes and continued to decline. Today, the downward pivot points are the support of the classic pivot levels (1.1284 – 1.1247 – 1.1178). The nearest most important pivot points to develop an upward correction are set at 1.1353 (central pivot level) and 1.1413 (long-term weekly trend).

GBP/USD

Bearish traders continued to decline and started testing the support of the weekly medium-term trend (1.3571). The broken levels and left above in the current situation serve as the nearest resistances 1.3637 (daily Tenkan) and 1.3669 (weekly Fibo Kijun) – 1.3704 (monthly Tenkan). The breakdown of the level of 1.3571 will resume the decline further towards the downward points at 1.3528 (daily Fibo Kijun) and in the area of the accumulation of levels at 1.3497 – 1.3454 (weekly and daily levels).

The main advantage in the smaller timeframes currently belongs to the bearish side. However, the pair is currently in the upward correction zone and is trying to break through one of the key levels 1.3608 (central pivot level). The next important target to recover bullish positions is the weekly long-term trend (1.3669). The nearest resistance can now be seen at 1.3644 (R1). However, if the upward correction ends and the pound continues to decline, then intraday pivot points for the bears will be the support of the classic pivot levels (1.3556 – 1.3520 – 1.3468).

***

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.

The material has been provided by InstaForex Company – www.instaforex.com

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