FX.co ★ Technical analysis and recommendations for EUR/USD and GBP/USD on May 19, 2021

EUR/USD

Yesterday, bullish traders were able to continue the upward movement and as a result, they started testing the historic level of 1.2243 today. The breakdown of this level and consolidation above it will open up new opportunities. If this happens, the nearest bullish targets will be the maximum extreme (1.2349) and the daily target for breaking the cloud (1.2345 - 1.2416). Currently, the levels, which were broken through the day before, serve as supports. The nearest will try to maintain the bullish interests in order to reach the levels of 1.2150 (historical level + daily Tenkan) and 1.2102 (weekly Fibo Kijun + daily Kijun).

The intraday pivot points to resume growth are the resistances of the classic pivot levels 1.2254 - 1.2286 - 1.2338. In turn, the pivots for the current downward correction are located at 1.2202 (central pivot level) and 1.2138 (weekly long-term trend). We can note the nearest support level at 1.2170 (S1). A consolidation below which will change the current balance of power in the smaller time frames and contribute to the strengthening of the bearish mood.

GBP/USD

The daily target is left behind, while the bulls further rise. Now, the main upward pivot point is the maximum extremum, which allows us to restore the upward trend in the higher time frames. After consolidating above it, it will be possible to reassess the situation and outline new prospects. The current support levels are the limits of the daily target (1.4137 - 1.4090) and the daily short-term trend (1.4053).

The bears are holding the pair in the correction zone for a long time, gaining advantages for themselves. However, although the analyzed technical indicators have changed to support bearish sentiments, the key supports continue to favor the bulls. We can see the significant changes in the balance of power after the breakdown of 1.4178 (central pivot level) and 1.4108 (weekly long-term trend), as well as after the reversal of the moving average.

The resistances of the classic pivot levels (1.4225 - 1.4266 - 1.4313) will act as upward pivot points, once the pair exits the correction zone and restore the upward trend on the hourly chart.

***

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.