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

EUR/USD

The bulls showed growth to the main resistances of the daily Ichimoku cross (1.1808-03 Tenkan + Kijun) at the end of the previous week, thereby questioning the effectiveness of the breakdown and the success of the recovery of the downward trend. The main task in the near future for the further formation of the rebound from the encountered influence zone of the monthly support level (1.1695) is to break through the border of 1.1831-40. A consolidation above the level of 1.1840 will allow the bulls to eliminate the daily dead cross and take over the weekly short-term trend.

The main advantage in the smaller time frames remains on the bullish side, despite being in the zone of a downward correction and the bearish adjustment of many of the analyzed indicators. The end of the correction and the restoration of the upward trend will return the relevance to the upward targets, which are currently located at 1.1824 - 1.1852 - 1.1900 (resistances of the classic pivot levels). In this situation, the key levels in the smaller time frames form support and pivot points for the development of correction at the borders of 1.1776 (central pivot level) and 1.1744 (weekly long-term trend).

GBP/USD

The bears failed to confirm and consolidate their advantages in the weekly chart. Today, the weekly short-term trend has slightly changed its location, where it only strengthened and strengthened the zone of accumulation of levels, which now have a major impact on the development of the situation. To continue the decline and consider new plans, the bears should break through the area of 1.3830 - 1.3777 (weekly levels + daily Kijun). The current resistance is now the daily short-term trend (1.3874), then the next resistance area can be noted at 1.3890 - 1.3910 (lower border of the daily cloud + weekly medium-term trend).

Last Friday, the pound moved above the key levels of the smaller time frames. At the moment, this zone is being retested. The key levels are joining forces in the area of 1.3843-44 (central pivot level + weekly long-term trend). The pullback and update of Friday's high (1.3874) will serve as a good basis to further strengthen the bullish mood. The pivot points to resume growth will be the resistance of the classic pivot levels (1.3895 - 1.3927 - 1.3979).

In turn, a consolidation below the key levels (1.3843) will affect the current balance of forces on the H1 chart, but the further bearish advantage will depend on the breakdown of the support zone (1.3830 - 1.3777) in the higher time frames.

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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.