FX.co ★ EUR/USD and GBP/USD: Technical analysis for July 7

EUR/USD

Higher timeframes

Bulls have completed yesterday's testing of supports at 1.0837–46 but failed to break through the 1.0901–05 range. As a result, the main task for further recovery of bullish positions today is the bulls' confirmation of a rebound and a reliable consolidation above the trend line of daily correction and the area of 1.0901–05 (monthly medium-term trend + daily short-term trend). The inability of bulls to continue recovering positions will bring back the bears' desire to continue the decline, overcoming all levels of a fairly wide support zone. The next important bearish target can now be marked at 1.0799 – 1.0807, breaking through these levels will allow entering a bearish zone relative to the daily cloud and eliminating the daily golden cross.

H4 - H1

On the lower timeframes, another upward correction led to the testing of key levels that are currently converging around 1.0875–88 (central pivot point + weekly long-term trend). A break above will change the current balance of power, and the next targets for intraday upward movement will be the resistances of classic pivot points (1.0915 - 1.0942 - 1.0982). A rebound will bring back bearish sentiments, and the supports of the classic pivot points (1.0848 – 1.0808 – 1.0781) will serve as targets in this case.

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GBP/USD

Higher timeframes

Bulls tested the resistance of the final level of the monthly Ichimoku cross (1.2760) after rebounding from the support of the daily short-term trend (1.2685). In this market segment, the monthly levels of 1.2760 and 1.2893 are currently the main targets for bulls. The levels of the daily Ichimoku cross (Tenkan 1.2685 + Kijun 1.2607) serve as the nearest supports on the higher timeframes.

H4 - H1

On the lower timeframes, the pair remains positioned above key levels, currently located at 1.2729 (central pivot point of the day) - 1.2707 (weekly long-term trend). By maintaining positions above these key levels, bulls retain the main advantage and can continue the upward movement, with intraday targets at 1.2785 - 1.2836 - 1.2892 (resistances of classic pivot points). The loss of key levels can change the current balance of power, with downward targets at 1.2678 - 1.2622 - 1.2571 (supports of classic pivot points).

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The technical analysis of the situation uses:

Higher timeframes - Ichimoku Kinko Hyo (9.26.52) + Fibo Kijun levels

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