Technical recommendations for EUR/USD and GBP/USD on January 8

EUR/USD

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All recent attempts to grow and continue the upward trend was changed into an active full downward correction to the daily short-term trend. Such movement in amplitudes indicates the presence of a strong resistance and struggle of market interests. The bears clearly disagree with the effective development of the upward trend in this place, however, they lack strength to make a deep large-scale decline due to the opponent's strong and long-term resistance, which still manages to update the highs.

In this regard, the historical high of 1.2555 is still the upward pivot point in the higher time frames. The main current support is the daily Tenkan, which is located at 1.2265 today, followed by the second level of 1.2170. A consolidation below will eliminate the daily golden cross of Ichimoku.

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Meanwhile, the key support levels in the smaller time frame have been lost, which are now combining their efforts in the area of 1.2287-81 (central pivot level + weekly long-term trend). As a result, the analyzed technical indicators took a neutral position. The current bearish targets are the classic pivot levels of 1.2229 - 1.2128 - 1.2130. On the contrary, a pullback, consolidation and movement above the key levels of 1.2287-81 will bring back bullish prospects. If the upward trend is restored, the next intraday targets will be 1.2386 (R2) and 1.2427 (R3).

GBP/USD

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The downward correction continues, but at the same time, bears fail to reach efficiency and scale. The pair is consolidating in the attraction zone of historical levels 1.3538 - 1.3624 and the daily short-term trend (1.3565). Moving above which and updating the high (1.3703) may contribute to the emergence of bulls' new plans and prospects. If the downward correction develops, the support levels in the upper time frame can be noted at 1.3481 - 1.3404 - 1.3350.

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On the other hand, daily consolidation prevents the movement in the smaller time frame. The pair is in the uncertainty zone with varying success of consolidation above or below the key hourly levels. In the meantime, the bears' side has the initial advantage, which is retesting the central pivot level (1.3575). The next important resistance is located at 1.3609 (weekly long-term trend), while other resistances are at 1.3618 - 1.3675 - 1.3718. The support levels, in turn, are located today at 1.3518 - 1.3475 - 1.3418.

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

The material has been provided by InstaForex Company - www.instaforex.com