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26.05.2020 10:28 AM
Technical analysis recommendations for EUR/USD and GBP/USD on May 26

EUR / USD

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Yesterday, the center of lateral movement was tested, noticed and marked once again. The formation of the deceleration at the meeting with the daily Kijun (1.0873) confirmed the relevance of the benchmarks of the existing daily sideways and prolonged weekly consolidation. Now, the main task for the players to increase is to consolidate in the daily cloud above the weekly resistances of 1.0934-65 (Fibo Kijun + Tenkan). The implementation of the breakdown of these levels will make a new attempt to exit the zone and will form prospects for climbing to new landmarks - 1.1067-88 (the upper border of the daily cloud + weekly Kijun and Senkou Span A + monthly Tenkan). Working in the channel and decreasing under its center of gravity (1.0873) will give the initiative to players to decline once again,

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On H1, some of the analyzed technical instruments actively support players to increase, thanks to which so far they have managed to complete the rise to a key level - resistance to the weekly long-term trend (1.0932). A reliable consolidation above will return the initial advantage on H1 to players to increase, the main task for which will be the restoration of an upward trend (1.1008). In the event of a rebound formation and a return to the side of the bears of the central Pivot level (1.0894), the pair will return to the test of the daily center of gravity (1.0873), strengthening the classic Pivot level S1 by H1 . A successful breakdown of which will return bearish moods and prospects to the market. The following intraday support is located today at 1.0850 (S2) - 1.0829 (S3).

GBP / USD

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In recent days, the pair has been avoiding active actions and remains in the zone of attraction of the weekly Fibo Kijun (1.2214). The attraction along with the weekly level is provided by several daily levels, led by the short-term trend, located today at 1.2184. Working above the indicated levels gives the daily short-term advantage to the increase players, whose main task is to raise and test (with the aim of breaking through) the following important resistances, which have now joined their efforts in the area of 1.2305- 60 (the upper limit of the daily cloud + the daily medium-term trend + the weekly short-term trend). A reliable consolidation above will require a new more careful assessment of the situation, as the current balance of power will be changed.

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On the lower time frames, the players to increase took hold of the support of all the analyzed technical instruments. To fully gain the bullish advantage on H1, it remains to update the maximum (1.2295) and restore the upward trend and further will depend on the result of interaction with the resistances of the higher halves. A change in moods and opportunities can be identified after the key levels of the lower halves of 1.2216 (weekly long-term trend) and 1.2184 (central Pivot level) return to the side of the bears. Next, the task of the players on the downside will be to restore the downward trend on H1 (1.2161) and D1 (1.2073).

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

Evangelos Poulakis,
Analytical expert of InstaForex
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