EUR/USD and GBP/USD: Technical analysis for August 16

EUR/USD

Higher Timeframes

Yesterday, bullish players failed, ending the day at the support of the weekly medium-term trend (1.0898). If the recovery of bullish positions resumes today, there is a good opportunity to form a candlestick combination with potential for the completion of the current weekly correction. In the way of bullish players, there will be a fairly broad resistance zone, combining levels from different timeframes (1.0969 – 1.0986 – 1.1001 – 1.1029 – 1.1055 – 1.1076 – 1.1123). Meanwhile, the tasks for the bearish players today remain unchanged, that is, to break through the weekly medium-term trend (1.0898) and the daily cloud (1.0889 – 1.0864).

H4 – H1

On the lower timeframes, the work below the weekly long-term trend (1.0954) continues, but at the same time, there has been no development of bearish sentiment for a long time. Consolidation above 1.0954 and a reversal of the moving average could change the current balance of power in favor of strengthening bullish sentiment. Additional bullish targets within the day are now at 1.0974 – 1.0996 (classic pivot points). In case of updating the low (1.0876), bearish activity may return to the market. Supports today can be noted at 1.0886 – 1.0864 – 1.0831 (classic pivot points).

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GBP/USD

Higher Timeframes

The upper border of the daily cloud (1.2712) continues to hold the pair from falling. Gaining support from the daily short-term trend (1.2715) will allow considering new bullish prospects at 1.2816 – 1.2865 – 1.2893 – 1.2940 (levels of the daily Ichimoku cross + weekly short-term trend + lower border of the monthly cloud). Changing the situation in favor of bearish players will be facilitated by entering the bearish zone relative to the daily cloud (1.2620), reinforced by levels of higher timeframes (1.2597 – 1.2629).

H4 – H1

The key levels of the lower timeframes have come together today in the area of 1.2708-04 (central pivot point + weekly long-term trend). They are reinforced by supports of higher timeframes (1.2712-15), so the activity of bullish players will contribute to the strengthening of sentiment and the emergence of new prospects. On the lower timeframes, such a prospect could be the formation of a bullish target for a break of the H4 cloud. Additional bullish targets within the day are R2 (1.2785) and R3 (1.2820).

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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)