FX.co ★ EUR/USD and GBP/USD: Technical analysis for July 14

EUR/USD

Higher timeframes

Bullish players continued their rise and began testing the final level of the monthly death cross of Ichimoku (1.1216). The liquidation of the monthly cross will allow new perspectives for the rise to be considered. At this stage, they will likely be the lower border of the monthly cloud (1.1523) and the weekly target for breaking the cloud (1.1626 – 1.1858). If the current testing of the monthly resistance (1.1216) ends with the formation of a rebound, the closest support on the higher timeframes can be provided by the levels of the daily cross of Ichimoku, located today at the borders of 1.1039 (Tenkan) – 1.0989 (Kijun).

H4 – H1

On the lower timeframes, the main advantage belongs to the bulls. The resistance levels of classic pivot points (1.1260 - 1.1295 - 1.1360) can serve as benchmarks for continued ascent within the day. Currently, the pair is in a correction zone. The most significant level that determines the current balance of power on lower timeframes is the weekly long-term trend, which is currently at 1.1057. Intermediate supports on this path can be provided by classic pivot points 1.1195 - 1.1160 - 1.1095 - 1.1060.

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GBP/USD

Higher timeframes

Yesterday, the pair closely approached the important resistance of 1.3142 (the upper border of the monthly cloud). Today, the result of the interaction will be formed on the daily and weekly timeframes, which will determine the further priorities of the movement in the near term. The nearest bullish target will be the current weekly target for a breakout of the Ichimoku cloud (1.3488 - 1.3836). All supports on higher timeframes are currently far from the price chart, so they are unlikely to be relevant.

H4 – H1

An upward trend is developing on the lower timeframes. New benchmarks for the trend today are located at 1.3186 – 1.3241 – 1.3343 (resistances of classic pivot points). The key levels currently act as supports; in the event of a corrective decline, they will meet the pair at 1.3084 (central pivot point of the day) and 1.2937 (weekly long-term trend). Intermediate support can be provided by S1 (1.3029).

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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)