FX.co ★ Technical analysis recommendations for EUR/USD and GBP/USD on August 25

EUR/USD

The slowdown in the influence zone of the monthly level (1.1695) could develop into an upward correction. At the moment, the first resistances of the daily dead cross are being tested (1.1735-58 Tenkan + Fibo Kijun). Above, there are more significant borders that combine the final levels of the daily Ichimoku cross (1.1787 - 1.1815) and the weekly short-term trend (1.1804). It should be noted that breaking through the daily cross and gaining weekly short-term support can significantly affect the current balance of power. Once this is implemented at the end of August, then we will have a rebound from the encountered support at 1.1695 on the monthly time frame. If this scenario fails, it is still in the interests of the bears to break through the support and continue the decline.

The bulls have the main advantage at the time of analysis. The key levels in the smaller time frame support bullish interests at 1.1750 (central pivot level) and 1.1715 (weekly long-term trend), with the nearest support currently being tested at 1.1734 (R1). The resistance of the classic pivot levels (1.1772 - 1.1788 - 1.1810) serves as pivot points for further growth.

In turn, if the price is consolidated below the level of 1.1715 and the movable reversal, the bearish mood may return to the market. The primary task will be to break through the level of 1.1695 and restore the downward trend (1.1675).

GBP/USD

The attraction and influence of 1.3646-90 (upper border of the weekly cloud + monthly short-term trend) did not allow the bears to confirm the breakdown and continue the decline. Bearish traders can only return their prospects in the near future only after a reliable breakdown of 1.3646-90.

Meanwhile, the bulls recovered their positions since the beginning of the week due to the met support and are now above the levels of 1.3646-90. Further bullish progress in the current conditions may be delayed since many resistances are now united at a fairly short distance of 1.3740 (daily Tenkan + Fibo Kijun) - 1.3778 (daily Kijun + Senkou Span B + weekly Tenkan) - 1.3830 (daily and weekly Fibo Kijun).

The pair is at the breaking point in the smaller time frame. The bulls managed to consolidate above the key levels but still cannot leave their attraction zone and support level at 1.3722 (central pivot level) - 1.3690 (weekly long-term trend). This condition is affected by the meeting with the resistances (1.3740) and their influence in the higher time frames. The breakdown of these resistances will allow us to move towards new pivot points. On the contrary, a return below the levels 1.3722 - 1.3690, and below the weekly support of 1.3646, can bring bearish sentiment back to the market. The task after that will be restoring the downward trend (1.3601).

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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.