Technical analysis recommendations for EUR/USD and GBP/USD on January 26

EUR/USD

Yesterday, the euro/dollar pair maintained its area and remained within important levels of 1.2170-35 (historical level + weekly Tenkan + daily Tenkan). Today, the levels remain as resistances, which are significant in changing the balance of forces. The current main task of the bears is to update the low (1.2054), enter the daily cloud and break through the support of the weekly Fibo-Kijun (1.2065).

Bears managed to reach the key levels in the smaller time frames, which are located in the area of 1.2147-44 (central pivot level + weekly long-term trend) today. Due to this, they took the advantage. The classic pivot levels act as downward reference points and support within the day. At the moment, the euro is testing the support level of 1.2110 (S1), followed by 1.2080 (S2) and 1.2043 (S3). A consolidation above the range of 1.2147-44 will affect the market situation. In this case, 1.2177 (R1) - 1.2214 (R2) - 1.2244 (R3) will be considered as the bulls' upward pivot points.

GBP/USD

Bulls maintained their position in the correction zone yesterday. As a result, the corrections high (1.3745) still remains their nearest pivot point. At the moment, the pound is busy deepening the current correction and strengthening bearish mood. The next supports are located at 1.3532 (daily Fibo Kijun) and 1.3466-39 (daily Kijun + weekly Tenkan).

Currently, all analyzed technical tools in the smaller time frames favor the bears. The pair has now stopped at the support level of 1.3605 (S2). The current balance of forces is likely to change in the area of 1.3680-74, where the central pivot level of the day (1.3680) and the weekly long-term trend (1.3674) have combined their efforts. If this plan is fulfilled, we can note the next resistances of the classic pivot levels at 1.3713 - 1.3755 - 1.3788.

Ichimoku Kinko Hyo (9.26.52), Pivot Points (classic), Moving Average (120)