FX.co ★ Technical analysis recommendations for EUR/USD and GBP/USD on July 16

Technical analysis recommendations for EUR/USD and GBP/USD on July 16

EUR / USD

The pair updated the maximum extreme of the June weekly consolidation (1.1422), indicating a slight slowdown on the daily time frame. The ability of a pair to consolidate in the weeks above the encountered resistance area of 1.1389-1.1422 (monthly Fibo Kijun + maximum June extreme) and closing of the week above these levels will further enhance the players' increase. Their next reference point and task is the area of 1.1496-99 (100% development of the target for the breakdown of the daily Ichimoku cloud and the maximum extreme of the high March Wave). TThe formation of a rebound from the encountered resistance levels the bullish gains, returning the pair to the daily cross support (1.1344-10).

On H1, the development of a downward correction can be observed. Technical indicators were rebuilt to support the bears, while the pair was able to consolidate below the central Pivot level (1.1418). The next important bearish reference is the weekly long-term trend (1.1351), the nearest support can be noted at 1.1385. The final support for the classic Pivot levels of the day is located today at 1.1324. Thus, the players to rise need to return the central Pivot level of the day (1.1418) and the upward trend (1.1452) to restore their advantages.

GBP / USD

Updating last week's high (1.2669) and consolidating above would allow the pound to begin testing important resistance of this area 1.2711-35 (monthly Fibo Kijun + weekly Senkou Span B), but yesterday, the players did not manage to continue the growth they had started to increase. As a result, the pair returned to the zone of attraction of the daytime cross of Ichimoku, after gaining from the weekly Fibo Kijun (1.2520). Now, working in the zone of attraction and influence of these levels will contribute to the formation and maintenance of uncertainty. A consolidation below and the breakdown of the most significant supports of this section 1.2440-60 (monthly cross + weekly Tenkan + daily cloud) will open up new prospects for players to decline.

At lower time intervals, priorities shifted to the side of the players to decline again. The bears currently enlisted the support of technical indicators and operate under key levels 1.2595-91 (central Pivot level + weekly long-term trend), which are responsible for the distribution of forces on H1. The pair is now testing the first support for the classic Pivot levels 1.2541 (S1), and further supports are located at 1.2495 (S2) and 1.2441 (S3). In the event of a return and consolidation over key levels of the lower halves (1.2595-91), the role of the main guidelines will go to the highs of yesterday (1.2649) and last week (1.2669).

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