FX.co ★ Technical analysis recommendations for EUR/USD and GBP/USD for August 5

EUR/USD

The bulls did not manage to go beyond the last week's limits yesterday. The high (1.1909) and the resistance of the weekly Fibo Kijun (1.1920) remained unconquered. The failure of the bulls allowed the opponent to seize the initiative and execute the corrective decline to the daily supports. At the moment, the levels of the daily clouds are forming current support at the boundaries of 1.1831 - 1.1812. The breakdown and consolidation below will allow us to consider the possibility of testing the July lows (1.1752).

The key supports on H1 were broken yesterday. Due to this, the advantage on the lower time frames is now on the side of the bearish players. The benchmarks for the continuation of the decline within the day are the support of the classic pivot points, which today are located at 1.1813 - 1.1789 - 1.1746. The bulls will be able to change the current balance of power and plan for further recovery of positions as a result of reliable overcoming of key levels. At the moment, they are joining forces in the area of 1.1856-70 (central pivot point + weekly long-term trend).

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GBP/USD

Yesterday, bulls attempted to test the important resistances of the current area - 1.3958 - 1.3990 (upper border of the monthly cloud + daily cloud + weekly level) but failed to achieve a positive result. The pound returned to the area of current supports 1.3910 - 1.3881 (weekly Tenkan + Kijun) and is still under the influence of their attraction. As a result, the resistance zone 1.3958-90 continues to serve as the main upward reference point. If the decline resumes, bearish interests will rest today on the support of the daily Ichimoku cloud (1.3859 - 1.3825 - 1.3777 - 1.3728), strengthened by the weekly Fibo Kijun (1.3830).

In the current situation, the key supports of the lower time frames for the last few days have consolidated in the area of the current supports for the higher halves (1.3881 - 1.3910). Today, the central pivot point and the weekly long-term trend are joining forces at 1.3909-18. The attraction and influence of these levels restrain the development of movement and resist long-term changes in the situation. Nevertheless, on the lower time frames, it can be noted that consolidation above the levels will contribute to the advantage of the bulls on H1, their further targets within the day are located at 1.3934 - 1.3981 - 1.4006 (classic pivot points), and work below these levels gives preference to strengthening bearish sentiment. Supports are at 1.3862 (S1) - 1.3837 (S2) - 1.3790 (S3).

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In the technical analysis of the situation, the following are used:

higher time frames - Ichimoku Kinko Hyo (9.26.52) + Fibo Kijun levels

H1 - Pivot Points (classic) + Moving Average 120 (weekly long-term trend)