Technical analysis recommendations of EUR/USD and GBP/USD on December 21, 2021

EUR/USD

Traders were not able to support the development of moods, which were indicated at last week's close. On the first day of the new trading week, the pair returned to the consolidation area, which still includes the monthly level of 1.1290. It should be noted that the daily dead cross has also recently moved to this area. To change the situation, the bulls should overcome the current attraction and sharply consolidate above the maximum extremes of the current consolidation (1.1360-83). Accordingly, it will be important for the bears in the current conditions to leave the consolidation zone, moving beyond its low (1.1186).

Uncertainty is currently dominating the smaller timeframes. The pair is in the influence zone of the key levels, which now combine their actions in the area of 1.1286-72 (central pivot level + weekly long-term trend) and are strengthened by the levels in the higher timeframes. Trading in this attraction zone will preserve uncertainty. The resistances of the classic pivot levels (1.1308 - 1.0341 - 1.1377) presently act as intraday upward pivot points, while the supports of the classic pivot levels (1.1239 - 1.1203 - 1.1170) act as downward pivot points.

GBP/USD

The pound retains its location and operation between the two important levels of this section 1.3164 (monthly Fibo Kijun) and 1.3248 (the lower border of the weekly cloud). A movement beyond the range and a reliable consolidation above or below can be the beginning of changes and strengthening of the moods of one of the opposing sides. After that, it will be possible to analyze the situation for further prospects.

The bears have the main advantage in the smaller timeframes. Nevertheless, the pair has been in the upward correction zone for a long time, while the bulls managed to capture the first key level – the central pivot level of the day (1.3207). The next key level, responsible for the distribution of forces, is now located at 1.3252 (weekly long-term trend). Settling above will deprive the bears of having the main advantage. In this case, the nearest upward pivot points will be R2 (1.3278) and R3 (1.3311), but the most significant one will be the maximum extremum (1.3374). However, if bearish sentiments return to the market in the near future, then the support of the classic pivot levels (1.3169 - 1.3136 - 1.3098) will serve as downward targets after yesterday's low (1.3173) is updated.

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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.