FX.co ★ Technical analysis recommendations of EUR/USD and GBP/USD on January 10, 2021

EUR/USD

The weekly short-term trend (1.1325) has fallen to the consolidation zone and has now combined forces with the daily cross (1.1330 - 1.1305 - 1.1285) and the monthly level (1.1290). If the forces of the combined levels manage to keep the situation from resuming the decline, then the entry and consolidation in the daily cloud (1.1361) will allow the continued recovery of bullish positions. The next important border of the upward targets is now the accumulation area of resistances within 1.1439-92 (monthly levels + weekly Fibo Kijun + upper border of the daily cloud).

The pair in the smaller timeframes continues to trade above the weekly long-term trend (1.1311), which gives the initial advantage to the bulls. However, there have been no significant bullish gains for a long time and the situation is developing in the consolidation zone of the higher timeframes, with the formation of a sideways, undirected movement in the smaller ones. Currently, the central pivot level (1.1338) puts attraction and influence, while the classic pivot levels 1.1387 - 1.1413 - 1.1462 serve as upward pivot points. In turn, the breakdown of key levels (1.1338-11) will allow us to consider testing the support levels of 1.1263 (S2) and 1.1237 (S3), which may lead to further strengthening of bearish positions.

GBP/USD

The bulls continue to insist on strengthening their sentiments and capabilities. They managed to consolidate above the daily cloud (1.3514) and close the previous week above the weekly medium-term trend (1.3571). The area of 1.3669 (weekly Fibo Kijun) - 1.3704 (monthly Tenkan) serves as an upward pivot point to resume growth. Meanwhile, the nearest support zone is formed by daily and weekly levels at 1.3514 - 1.3506 - 1.3475.

The advantages in the smaller timeframes completely remain on the bullish side. So, the intraday upward pivot points are set at 1.3612 - 1.3689 - 1.3682 (classic pivot levels). The key levels here are currently forming support at 1.3569 (central pivot level) and 1.3533 (weekly long-term trend). In this case, a consolidation below will change the current balance of power and may further strengthen the bears.

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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.