FX.co ★ Technical analysis recommendations on EUR/USD and GBP/USD for July 7, 2022

EUR/USD

Higher timeframes

Bears managed to continue the decline yesterday. As a result, the potential for strengthening bearish sentiment remains. The targets for the decline as noted earlier in the current situation, can be noted at 1.0000 (psychological level) and 0.8225 (local low of 2000). The passed supports (1.0339–49) with the development of an upward correction may provide resistance, then the resistance levels of the daily Ichimoku cross will come into play.

H4 – H1

The advantage on the lower timeframes now belongs to the bears. Among further bearish reference points within the day are the supports of the classic pivot points (1.0137 – 1.0092 – 1.0022). As of this writing, the pair is in the correction zone, testing the central pivot point of the day (1.0207). The breakdown of the level and the continuation of the correction will allow us to consider the resistance of the weekly long-term trend (1.0353) as a guide. This level (1.0353) is responsible for the current balance of power in the lower timeframes. Overcoming it and turning around will change the balance of power in favor of the bulls.

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GBP/USD

Higher timeframes

Bears managed to continue the decline yesterday, but nothing significant took place. A stall and return above 1.2000 could prevent bears from going further down. In this case, a new upward correction will develop with targets at the resistance of the daily Ichimoku cross (1.2104 – 1.2151 – 1.2237 – 1.2322) and the weekly short-term trend, located at 1.2270. If bears actively continue the downward trend, their main target will be the local low of 2020 (1.1411).

H4 – H1

Bears currently dominate the lower timeframes. Their targets for continuing the decline within the day are the support of the classic pivot points, which are today located at 1.1867 – 1.1814 – 1.1753. An upward correction is currently underway. Bulls have already seized the central pivot point of the day (1.1928), so the main reference point for the correction now is the long-term weekly trend (1.2043), which is responsible for the balance of power. Breakout, consolidation above, and reversal of the moving average will give bulls the advantage on the higher timeframes.

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

higher timeframes – Ichimoku Kinko Hyo (9.26.52) + Fibo Kijun levels

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