FX.co ★ Technical analysis recommendations on EUR/USD and GBP/USD for August 31, 2022

EUR/USD

Higher timeframes

The situation remains without development. Uncertainty persists. The center of attraction at the moment is the area of 1.0000, where today the psychological level (1.0000) and the daily short-term trend (0.9999) combine their efforts. Changes can be achieved by leaving the zone of attraction and implementing the passage of the nearest restrictions. For bears, new prospects will appear upon breakdown and consolidation below the minimum extremum of the current correction (0.9901). For bulls, the main reference points for changing the situation now are the resistance of the daily death cross (1.0080 - 1.0135 - 1.0190), the lower boundary of the daily cloud (1.0199) and the weekly short-term trend (1.0182).

H4 – H1

Uncertainty prevails on the market, however, the pair is above the key levels of the lower timeframes at 1.0017 (central pivot point of the day) - 0.9986 (weekly long-term trend), so bulls have some advantage. The reference points for the development of the upward trend within the day will be the resistance of the classic pivot points, which today can be noted at 1.0051 - 1.0090 - 1.0124. If the advantage is lost and bears manage to take over the weekly long-term trend (0.9986), then with further strengthening of bearish sentiment, the support of the classic pivot points (0.9978 - 0.9944 - 0.9905) may become crucial.

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GBP/USD

Higher timeframes

Bears on Monday and Tuesday managed to update the lows. The decline continues. Its target now is 1.1411 (2020 low). In the event of a change in sentiment and priorities, for the emergence of a full-fledged corrective rise and the emergence of new prospects for an increase, players need to gain a foothold above the boundaries of 1.1759 - 1.1778, where levels are currently combining their efforts, led by a daily short-term trend.

H4 – H1

At the moment, work is going on in the correction zone in the lower timeframes. The reference points for the continuation of the downward trend within the day are the support of the classic pivot points (1.1595 - 1.1537 - 1.1455). The main boundaries for the development of an upward correction are now 1.1677 (central pivot point) and 1.1748 (weekly long-term trend). When these reference points are broken and the moving average reverses, the current balance of power will change. In this case, the resistance of the classical pivot points 1.1817 (R2) and 1.1875 (R3) can serve as additional reference points for the upward trend.

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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)