EUR/USD and GBP/USD: Technical analysis for May 24
May 24, 2023 12:25 pm
EUR/USD
Higher timeframes
The pair continues to work within the attraction zone of 1.0775–87–96, where several levels of higher timeframes currently converge. The breakdown of the zone and further decline will allow for a test of the support of the weekly medium-term trend (1.0693). A rebound and active position recovery will direct bulls first to the daily resistance levels (1.0848-75) and then to the area of 1.0901–1.0920 (monthly medium-term trend + weekly short-term trend).
H4 – H1
On the lower timeframes, bears maintain the main advantage by working below key levels, which are currently located at 1.0784 (central pivot point) and 1.0802 (weekly long-term trend). A consolidation above and a reversal of the movement can change the current balance of power. In case of further movement within the day, the resistance levels of the classic pivot point (1.0807-1.0844-1.0867) and support levels (1.0747-1.0724-1.0687) can be significant reference points.
***
GBP/USD
Higher timeframes
Bears are trying to leave the attraction zone led by the weekly short-term trend (1.2448). This level covers the resistance zone of the daily Ichimoku cross (1.2458-1.2485-1.2522-1.2559). If bears manage to move away from the attraction levels, they will face a sufficiently wide support zone that combines various levels from higher timeframes (1.2361-1.2344-1.2302-1.2240-1.2173).
H4 – H1
Testing the key levels of 1.2409–35 (central pivot point + weekly long-term trend) continues on the lower timeframes. Working above these levels favors strengthening bullish sentiment, and the classic pivot points at 1.2482 and 1.2519 can serve as targets for intraday upward movement. Working below these levels provides a bearish advantage, and in case of further decline, the support levels of the classic pivot points (1.2373-1.2336-1.2300) will come into play.
EUR/USD
Higher timeframes
The pair continues to work within the attraction zone of 1.0775–87–96, where several levels of higher timeframes currently converge. The breakdown of the zone and further decline will allow for a test of the support of the weekly medium-term trend (1.0693). A rebound and active position recovery will direct bulls first to the daily resistance levels (1.0848-75) and then to the area of 1.0901–1.0920 (monthly medium-term trend + weekly short-term trend).
H4 – H1
On the lower timeframes, bears maintain the main advantage by working below key levels, which are currently located at 1.0784 (central pivot point) and 1.0802 (weekly long-term trend). A consolidation above and a reversal of the movement can change the current balance of power. In case of further movement within the day, the resistance levels of the classic pivot point (1.0807-1.0844-1.0867) and support levels (1.0747-1.0724-1.0687) can be significant reference points.
***
GBP/USD
Higher timeframes
Bears are trying to leave the attraction zone led by the weekly short-term trend (1.2448). This level covers the resistance zone of the daily Ichimoku cross (1.2458-1.2485-1.2522-1.2559). If bears manage to move away from the attraction levels, they will face a sufficiently wide support zone that combines various levels from higher timeframes (1.2361-1.2344-1.2302-1.2240-1.2173).
H4 – H1
Testing the key levels of 1.2409–35 (central pivot point + weekly long-term trend) continues on the lower timeframes. Working above these levels favors strengthening bullish sentiment, and the classic pivot points at 1.2482 and 1.2519 can serve as targets for intraday upward movement. Working below these levels provides a bearish advantage, and in case of further decline, the support levels of the classic pivot points (1.2373-1.2336-1.2300) will come into play.
The technical analysis of the situation uses:
Higher timeframes – Ichimoku Kinko Hyo (9.26.52) + Fibo Kijun levels
Lower timeframes – H1 – Pivot Points (classic) + Moving Average 120 (weekly long-term trend)
The material has been provided by InstaForex Company – www.instaforex.com
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