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FX.co ★ Technical analysis and recommendations for EUR/USD and GBP/USD on May 7, 2021

Technical analysis and recommendations for EUR/USD and GBP/USD on May 7, 2021

EUR/USD

Technical analysis and recommendations for EUR/USD and GBP/USD on May 7, 2021

Yesterday, the bulls returned to the daily short-term trend (1.2068). As a result, this week, and today is its last working day, is characterized by the presence of uncertainty and the lack of clear advantage. For bullish traders, the resistance levels set at 1.2105 (weekly Fibo Kijun) and 1.2150 (historical level) are still important and significant. As for the bearish ones, the main interest is still focused on breaking through the strong support zone of 1.1977 - 1.1947 - 1.1927 (daily cloud + monthly Tenkan + levels of the daily and weekly Ichimoku cross) and leaving the daily cloud.

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Technical analysis and recommendations for EUR/USD and GBP/USD on May 7, 2021

The upward correction during the previous day managed to break through the key levels in the smaller time frames. Today, these levels are acting as support. In order to maintain the bullish interests, they are currently found in the area of 1.2035-43 (central pivot level + weekly long-term trend). If the growth continues, the resistances of the classic pivot levels 1.2094 - 1.2122 - 1.2173 can be noted.

On the contrary, a decline and loss of 1.2035-43, will change the balance of power in the smaller period. The strengthening of the bearish mood will let the supports of the classic pivot levels set at 1.2015 - 1.1964 - 1.1936 be relevant again.

GBP/USD

Technical analysis and recommendations for EUR/USD and GBP/USD on May 7, 2021

The situation yesterday did not dramatically change again. The pound remains in the attraction zone for daily levels around 1.39. In case of changes and activity, the price will retest the zones that limit the current movement. For bullish traders, the levels of 1.3958 (the upper limit of the monthly cloud) and 1.4008 (the maximum extreme) will be considered. As for the bearish traders, further strengthening will rest at 1.3842 - 1.3806 (levels of the daily and weekly Ichimoku cross).

Technical analysis and recommendations for EUR/USD and GBP/USD on May 7, 2021

The uncertainty persists on the chart of the smaller time frames. The pair continues to move in the attraction zone of key levels, which are joining forces in the area of 1.3883-94 (central pivot level + weekly long-term trend) today. Having the pair above the key levels increases the opportunities for the bulls. The pivot points are seen at 1.3933 - 1.3978 - 1.4017 (classic pivot levels). In turn, a decline below the level of 1.3883-94 will contribute to the strengthening of the bearish mood. In this case, interests will be directed to 1.3849 (S2) - 1.3810 (S2) - 1.3765 (S3).

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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.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade
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