07.01.202214:33 Forex Analysis & Reviews: Technical analysis recommendations of EUR/USD and GBP/USD on January 7, 2021

EUR/USD

The situation did not go significant changes over the past day. The pair continues to remain in the attraction zone of the monthly level (1.1290), with which the daily Ichimoku cross has been combining its efforts for a long time. If there are intentions to leave the long-term consolidation zone, the opportunities of the bulls will rest against the resistance of 1.1383-87-98 (highs of consolidation + weekly short-term trend). In turn, the opportunities for the bears will open after consolidation under the minimum extreme of consolidation (1.1186).

The pair in the smaller timeframes is in the attraction zone of key levels. At the moment, testing is taking place from below, which means that the bears have some advantage. The formation of a rebound from the key levels of 1,1304-12 (central pivot level + weekly long-term trend) will preserve the preconditions to strengthen the bearish mood. The intraday downward pivot points are the support of the classic pivot levels (1.1276 - 1.1257 - 1.1229 ). On the contrary, a consolidation above the area of 1.1304-12 will give an advantage to the opponent, indicating preferences to develop the bullish mood. Today's resistances of the classic pivot levels are at 1.1323 - 1.1351 - 1.1370.

GBP/USD

The bulls are making an attempt to consolidate in the upper zone relative to the daily cloud, using the broken resistances as supports 1.3514 (upper border of the daily cloud) - 1.3503 (daily short-term trend) - 1.3475 (weekly Fibo Kijun). The current obstacle hindering the bulls' further strengthening is the weekly medium-term trend (1.3571).

Despite being in the correction zone for quite a long time in the smaller timeframes, the preponderance of forces on the bullish side remains, which continue to trade above the key levels of 1.3525-20 (central pivot level + weekly long-term trend), maintaining their support. In this case, the resistance of the classic pivot levels (1.3562 - 1.3594 - 1.3631) serves as upward pivot points. In turn, downward targets today are located at 1.3493 - 1.3456 - 1.3224 (support for the 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.