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Technical analysis recommendations for EUR/USD and GBP/USD on February 1

EUR/USD

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The situation remains the same, which keeps the uncertainty and the location of the pair above the daily cloud. As a result, today's center remains to the daily short-term trend (1.2124) and the upper limit of the cloud (1.2113). As the new trading week starts, the weekly Tenkan (1.2201) strengthened the resistance zone formed from the levels of the daily dead cross (1.2167 - 1.2202 - 1.2236) and an important all-time level (1.2170). The nearest support that allows the pair to leave the uncertainty zone continues to decline and identify new prospects in the area of 1.2064-54 (weekly Fibo Kijun + maximum extreme).

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The key levels of the smaller time frames joined forces at 1.2130 (weekly long-term trend + central pivot level of the day) to confirm the uncertainty in the higher time frames. The pair has been moving in the area of the significant levels (1.2130 - 1.2124) for quite some time. Thus, if the situation and market activity change, the relevance will return to the intraday pivot points – resistances (1.2163 - 1.2190 - 1.2224) and supports (1.2102 - 1.2068 - 1.2041) of the classic pivot levels.

GBP/USD

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The pound continues to consolidate and keeps its position above the daily short-term trend (1.3683). January's maximum extreme (1.3758) and the first target level of the weekly target for cloud breakdown (1.3904) are now the upward pivots. Bulls' inability to actively and effectively continue the upward trend can pass the advantages to the opponent. In this case, the main task of the bears is to liquidate the daily golden cross (1.3683 - 1.3632 - 1.3593 - 1.3554) and form a downward correction to the weekly short-term trend, which is currently located at 1.3446.

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The key levels in the smaller time frames continue to combine their efforts in the level of 1.3700. A movement above which will give the initial advantage to bulls, which they will strive to develop. But on the contrary, a movement below it will favor the bears, whose further plans include strengthening the bearish mood. Among the intraday pivot points, we can consider the resistance levels of 1.3747 - 1.3795 - 1.3841 and support levels of 1.3653 - 1.3607 - 1.3559.

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

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