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

EUR/USD

Higher timeframes

The last day did not make any significant changes. The uncertainty persisted. The pair remains in the zone of attraction and influence of the daily medium-term trend (1.0160). As a result, the main prospects and benchmarks have not changed. For bears in the current situation, the main task is to eliminate the golden cross on the daily chart, its final level is now at the turn of 1.0111. If the initiative goes to the bulls, then the nearest resistance for them is still located at 1.0210 (daily Fibo Kijun) – 1.0246 (daily short-term trend) – 1.0285 (weekly short-term trend).

H4 – H1

In the lower timeframes, the pair remains in the correction zone. The first support for the classic pivot points (1.0150) has now been tested. Further, if the decline continues, supports S2 (1.0119) and S3 (1.0093) may come into play. In addition, the target for the breakdown of the H4 cloud (1.0055 - 1.0020) continues to serve as a target. The central pivot point of the day (1.0176) now acts as a center of attraction. The weekly long-term trend (1.0219) in the current situation is the main limitation for the corrective rise.

***

GBP/USD

Higher timeframes

The resistance of the daily short-term trend (1.2140) returned the pair to the zone of attraction, which unites many levels of the higher timeframes—1.2000 (psychological level) - 1.2026 (daily medium-term trend) - 1.2046 (weekly short-term trend). The objectives of the bulls still hasn't changed. To form further prospects, they still need to overcome the level of 1.2140 (daily short-term trend). The outlook for the bears has not changed either. Their immediate task is the liquidation of the golden cross (1.1963) on the daily chart.

H4 – H1

Bears made a new low today and tested the first support at 1.2000, after which we see the development of an upward correction in the lower timeframes. At the moment, the central pivot point of the day (1.2071) is being tested. The next important resistance is the weekly long-term trend (1.2102), consolidation above will change the current balance of power in favor of bulls. Resistance of classical pivot points are today located at 1.2115 – 1.2186 – 1.2230. Support for the classic pivot points can be noted at 1.2000 – 1.1956 – 1.1885.

***

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)