FX.co ★ Technical analysis recommendations on EUR/USD and GBP/USD for July 18, 2022

EUR/USD

Higher timeframes

Today, the pair continued the development of an upward corrective movement. As of this writing, the daily short-term trend (1.0114) is being tested, which today went down to meet the bulls. If this level goes into the category of support, then the main task of the bulls will be the elimination of the daily death cross, its final levels are now located at 1.0284 (Kijun) and 1.0362 (Fibo Kijun), and gaining support for the weekly short-term trend (1.0370). If the daily correction ends in the area of its first target (1.0114), then new prospects for the bears will appear when the psychological level of 1.0000 is broken and the downward trend is restored (0.9952 local low).

H4 – H1

The bulls continued to rise and now entered the resistance zone R2 (1.0152). Further, the resistance of the classic pivot points, R3 (1.0207), serves as a reference point for the rise within the day. Today's key levels are the supports, combining their efforts around 1.0061–48 (central pivot point of the day + weekly long-term trend). Consolidation below will change the current balance of power of the lower timeframes and may serve as the beginning of the formation of a rebound from the daily short-term trend (1.0114). In this case, the support of classic pivot points will serve as reference points for the decline (1.0025 – 0.9970 – 0.9934).

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GBP/USD

Higher timeframes

On the daily timeframe, we are currently seeing the development of a corrective rise. As noted earlier, bulls now need to get hold of the daily short-term trend and the 1.2000 psychological level. The next important stage in the bullish direction will be the elimination of the daily death cross (1.2082 – 1.2158) and the transition to the weekly short-term trend (1.2210). For bears, the recovery and continuation of the downward trend are still of primary importance, the low of which is now at 1.1759.

H4 – H1

The advantage is currently on the side of the bulls. Today, the intraday benchmarks have been passed, so now the target is the boundary of the higher timeframes, namely the level of 1.2000. The breakdown of 1.2000 on the lower timeframes will coincide with the breakdown of the Ichimoku cloud on H4, so the target for the breakout of the H4 cloud will be added to the upward reference points when it is formed. The cancellation of the bullish advantage today may be the return of the pair under the key levels, which are currently at 1.1847 (central pivot point of the day) and 1.1871 (weekly long-term trend), and a secure consolidation below.

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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)