FX.co ★ Technical analysis recommendations for EUR/USD and GBP/USD on August 9

EUR/USD

The bears updated the July low at the close of the previous week and continued the daily downward trend. During this, their target for the breakdown of the H4 cloud (1.1752) was worked out, which resulted in some corrective slowdown in the four-hour period. The next pivot points for continuing the decline are now the monthly Fibo Kijun (1.1695) and the support of the historical minimum extremum (1.1602). The broken levels of the daily Ichimoku cross are now forming the nearest resistance zone, combining their efforts in the zone of 1.1806-26-46.

The advantage on the smaller time frames is on the side of the bears. The intraday downward targets are currently set at 1.1731 - 1.1701 - 1.1649 (classic pivot levels). If an emerging upward correction develops, the key resistance levels can be noted today at 1.1783 (central pivot level) and 1.1838 (weekly long-term trend). The nearest resistance level is now at 1.1813 (R1).

GBP/USD

Last week, the bulls failed to break through the resistances of 1.3958 - 1.3990 (upper limit of the monthly cloud + daily cloud + weekly level). Thus, its competitor closed the week with a slight advantage. However, the development of bearish plans is now opposed by several strong supports 1.3851 - 1.3830 (weekly Tenkan + Fibo Kijun), then the support levels of the daily Ichimoku cross 1.3777 (Kijun) and 1.3728 (Fibo Kijun). In this case, the current situation may contribute to the new activity of the bulls, who, under certain circumstances, will try to break through the range of 1.3958-90 in order to get new far-reaching plans and prospects.

At the moment, uncertainty prevails in the smaller time frames. The key levels 1.3903 (weekly long-term trend) and 1.3887 (central pivot level) are being tested from below, while the analyzed technical indicators are tuned in to support the bullish traders. After consolidating above 1.3903 - 1.3887, the resistance levels of 1.3915 - 1.3959 - 1.3987 (classic pivot levels) will serve as pivot points to strengthen the bullish mood. But if the low is updated, the support levels of 1.3843 - 1.3815 - 1.3771 (classic pivot levels) will be considered.

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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.