FX.co ★ Technical analysis and recommendations for EUR/USD and GBP/USD on May 28

EUR/USD

Before the end of the current week, the pair returned to the positions where it opened the week. The bulls' attempt to break through the resistance level of 1.2243 has not yet lead to a positive result. Most likely, it will remain in the history of the weekly candlestick analysis as an effective upper shadow. Now, the daily short-term trend (1.2208) has an attraction and influence on the development of the situation. The next support levels are located at 1.2150-59 (daily Fibo Kijun + historical level) - 1.2126 (daily medium-term trend) - 1.2093 - 1.2102 (daily Fibo Kijun + weekly Fibo Kijun) - 1.2027 (weekly medium-term trend).

The advantage in the smaller time frames is held by the bears since they are supported by all analyzed technical instruments. The only thing to keep in mind is that the daily consolidation sentiment continues to dominate. At the moment, the support level of 1.2174 (S1) is being tested. The next supports 1.2155 (S2) and 1.2134 (S3) may affect the decline. These levels are enhanced with support for the bigger time frames.

Today, the most significant levels in the smaller intervals are set at 1.2195 (central pivot level) and 1.2211 (weekly long-term trend). A consolidation above which can affect the current balance of power in the hourly chart. The main task for the subsequent strengthening of bullish sentiment will be to break through the important historical resistance of 1.2243 in the higher time frames.

GBP/USD

The bulls are still trying to break through the important historical level of 1.4240. An update of the extremum will allow the pound to restore the upward trend in the higher time frames and open up opportunities for new prospects. In the current consolidation, the daily short-term trend at 1.4162 and the fulfilled target for the breakdown of the daily cloud (1.4137 - 1.4090) continue to provide main support and influence.

The pair in the smaller time frames continues to trade in the attraction and influence zone of key levels, which combined their efforts in the area of 1.4155-71 today. The location and the movement above the levels favor the bulls. This is currently the situation. Here, we can consider the resistances of the classic pivot levels - 1.4250 - 1.4298 - 1.4377 as the upward pivot point.

In turn, a consolidation below the key levels 1.4155-71 (central pivot level + weekly long-term trend) will transfer the advantages to the bearish side. Their pivot points are located at 1.4123 - 1.4044 - 1.3996.

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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.