26.02.202112:30 Forex Analysis & Reviews: Technical analysis recommendations for EUR/USD and GBP/USD on February 26

EUR/USD

Exchange Rates 26.02.2021 analysis

It is difficult to predict what will be the result of the week and the month. Yesterday, the bulls only managed to have a long upper shadow in the daily candlestick. If the indicated shadow consolidates on the weekly candlestick today, then it is very possible that the favor will turn into the bears' side. Currently, the pair is seen again at the attraction and influence zone of 1.2150-70 (weekly short-term trend + all-time level). A movement above which suggests some bullish strength, which may lead to the bulls' further recovery. On the contrary, a consolidation below it will favor the bearish mood. Today, the support and downward targets are set at 1.2133 - 1.2098 - 1.2064 (daily cross + weekly Fibo Kijun).

Exchange Rates 26.02.2021 analysis

Bears declined to the key support level, that is, the weekly long-term trend (1.2155) in the H1 chart. If it consolidates below it and moving average reverse, the bearish mood will develop. However, the future will still depend on the breakdown of daily supports (1.2133 - 1.2098 - 1.2064). On the other hand, we can note the intraday support levels at 1.2140 - 1.2105 - 1.2053.

A prolonged decline, followed by the return of the bulls to the central pivot level (1.2192), may occur in the market temporarily, as we wait for the bullish prospects to be maintained and implemented. Today, the resistances of the classic pivot levels are seen at 1.2227 - 1.2279 - 1.2314.

GBP/USD

Exchange Rates 26.02.2021 analysis

The target (1.4181) of the weekly Ichimoku cloud has been completely broken down. This resulted in a downward correction, wherein a rebound formed in the daily chart. Now, there is every reason to fix the rebound on the weekly and monthly time frames, since the week and month will be closed today. The nearest supports, combining the daily and weekly levels, are currently located at 1.3904 and 1.3833.

Exchange Rates 26.02.2021 analysis

The bears and the downward trend maintains its strength in the smaller time frames. Here, we can note the support levels of 1.3942 - 1.3880 - 1.3760, which act as pivot points for intraday decline. In turn, the key resistances are set in the 1.4062-75 area (central pivot level + weekly long-term trend), which serve as pivot points for an upward correction. The breakdown of these levels can affect the current balance of strength.

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The following methods are used in the technical analysis of the situation:

Higher time frames – Ichimoku Kinko Hyo (9.26.52) + Fibo Kijun levels

H1 – Pivot Points (classic) + Moving Average 120 (weekly long-term trend)

*A análise de mercado aqui postada destina-se a aumentar o seu conhecimento, mas não dar instruções para fazer uma negociação.

Evangelos Poulakis,
Especialista em análise
do Grupo InstaForex © 2007-2021
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