FX.co ★ Technical analysis and recommendations for EUR/USD and GBP/USD on July 26, 2021

EUR/USD

Last Friday did not bring significant changes, so the weekly candlestick at the close stayed on the trend line. Uncertainty persists and prevails. If bullish traders are the first one to be active, their nearest targets will be the resistance of the Ichimoku daily dead cross (1.1802 - 1.1837 - 1.1864 - 1.1890). But if bearish traders restore the downward trend and can further decline, we can note the downward targets, which retain their location and value at 1.1695 - 1.1684 (monthly Fibo Kijun + the first target of the daily target for the breakdown of the cloud) and 1.1602 - 1.1619 (minimum extremum of the past + 100% working out of the daily target).

There is currently a struggle for key levels in the smaller time frames. Today, they have united at the borders of 1.1771-82 (central pivot level + weekly long-term trend). A consolidation above these levels gives an advantage to the bulls. The resistance of the classic pivot levels 1.1786 - 1.1803 - 1.1818 can serve as their intraday pivot points.

On the contrary, a consolidation below the levels and updating the low (1.1752) will restore the downward trend. The support of the classic pivot levels are set at 1.1754 - 1.1739 - 1.1722.

GBP/USD

The bulls managed to close the previous week very optimistically. As a result, the updated high (1.3786), strengthened by the daily medium-term trend (1.3785), will most likely lead to the implementation of the formed weekly potential. The next task for the bulls will be breaking through the daily dead cross (1.3836) and conquering the weekly Fibo Kijun (1.3824). In the current situation, the nearest support is the daily short-term trend (1.3735). We are closing July this week, so current trading will be recorded in the weekly and monthly results.

There is now a prolonged uncertainty in the smaller intervals. The situation is stuck to the central pivot level (1.3748) and does not give the bulls or their opponents any chances. If the bullish traders break through the attraction and influence of this level, which is the key for the hourly time frame, then the resistances of the classic pivot levels (1.3776 - 1.3808 - 1.3836) will serve as intraday pivot points. However, if the bearish traders regain their weekly long-term trend (1.3700), then their next most important task will be to restore the downward trend (1.3571 low), with the nearest intraday support at the level of 1.3656 (S3).

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Ichimoku Kinko Hyo (9.26.52) and Kijun-sen levels in the higher time frames, as well as classic Pivot Points and Moving Average (120) on the H1 chart, are used in the technical analysis of the trading instruments.