Technical analysis recommendations for EUR/USD and GBP/USD on July 22
EUR / USD
The euro continued to rise and updated another upward reference point - 1.1496-99 (100% target completion for the breakdown of the daily cloud + the maximum extremum of the March High Wave). The coming days will be spent on the formation of the weekly and monthly results. Breaking through the targets 1.1496-99 opens up new upward prospects - 1.1695 - 1.1740 - 1.1813 (target for the breakdown of the weekly cloud + the lower border of the monthly cloud). In case of formation of a rebound from the resistances encountered, the role of the nearest significant supports belongs to the daily Ichimoku cross (Tenkan 1.1401 - Kijun 1.1358), which has a gain from the monthly Fibo Kijun (1.1389).
The players to increase rose to the final boundary of the classic Pivot levels yesterday. As a result, the levels are forming a good reserve today for the development of the upward movement, the advantages and priority of which are currently preserved. The current resistances of the pivot levels are located at 1.1570 (R1) - 1.1613 (R2) - 1.1687 (R3). With the development of the corrective decline, the key supports for the lower halves will defend the interests of the players to increase by 1.1496 (central pivot level) and 1.1437 (weekly long-term trend).
GBP / USD
Yesterday, the pound started testing significant resistances - 1.2711-35 (monthly Fibo Kijun + weekly Senkou Span B). Breaking through these levels, updating the June maximum (1.2812) and entering the bullish zone relative to the weekly Ichimoku cloud (1.2953) are very important steps for the further development of the upward movement. If upside traders fail now, and a rebound is formed from the resistances they meet, the first pair will be met by the support of the daily short-term trend (1.2623), and then the interests of the downside traders will continue to rest on the accumulation of important and strong Ichimoku levels of the upper time intervals that form a support zone in the area of 1.2540 - 1.2440 (daily cloud + final borders of the daily golden cross + weekly levels + monthly cross of Ichimoku).
The influence and attraction of the encountered resistances forced the advanced players to take a break. The opponent took advantage of the circumstances and by now, we have a productive downward correction on H1, which is supported by most of the analyzed technical indicators. The bearish traders broke the support of the central Pivot level (1.2714). The next important reference point is the weekly long-term trend (1.2613), the nearest support can be noted at 1.2662 (S1). The weekly long-term trend was strengthened by the daily Tenkan (1.2623), which makes overcoming this boundary even more significant. With a reliable consolidation below, the current balance of forces will be changed and a rebound from the met supports of the upper halves (1.2711-35) will be formed. As a result, it can be concluded that under the current conditions, the work of the indicated supports (1.2714 - 1.2662 - 1.2613) is very important for maintaining the bullish potential, finding higher supports will contain opportunities for further development of the upward movement.
Ichimoku Kinko Hyo (9.26.52), Pivot Points (Classic), Moving Average (120)