EUR/USD and GBP/USD: Technical analysis for August 2
August 2, 2023 10:23 am
EUR/USD
Higher timeframes
The situation hasn’t change significantly since yesterday. The pair continues to trade within the attraction and influence zones of the weekly levels (1.0972 – 1.0986). The nearest targets, testing and breaking of which could lead to a change in the situation, are still located in the following areas: for bears 1.0897–95 – 1.0866 (weekly and monthly medium-term trends + daily cloud), for bulls 1.1055 – 1.1107 (daily Ichimoku cross levels).
H4 – H1
On the lower timeframes, the pair is in a correction zone. The breakout of the weekly long-term trend (1.1020) and a reversal in the moving average could change the current balance of power. In this case, the focus for intraday movement will be the classic pivot points (1.1030 – 1.1057). The pair will then rise towards the daily resistance levels, and the outcome of the interaction with these levels may determine further developments. On the other hand, if activity shifts in favor of the bears, it will be important for them to break below the current upward correction (1.0953–44) and continue the downward movement. Support levels to consider are S2 (1.0930) and S3 (1.0907).
***
GBP/USD
Higher timeframes
The support of the weekly short-term trend (1.2754) has been tested. A rebound from this level will bring the pound back into the influence zone of the lower boundary of the monthly cloud (1.2893). Currently, this level strengthens the zone of daily resistances (1.2867 – 1.2931). A break and consolidation above this zone will create opportunities for further recovery and strengthening of bullish sentiment. If the pound loses the support of the weekly short-term trend (1.2754), events will unfold differently, and the next target for bearish players will be the testing of the daily cloud (1.2651 – 1.2577), reinforced by supports from higher timeframes (1.2629 – 1.2597).
H4 – H1
On the lower timeframes, bulls managed to push the pair into the attraction zone of the central pivot point of the day (1.2784). Continuing the ascent will lead the pair to the weekly long-term trend (1.2846), the breakout and reversal of which can change the current balance of power on the lower timeframes. If the corrective rise ends and the pair updates its low (1.2740), it will head towards the support levels of the classic pivot points (1.2728 – 1.2684 – 1.2628).
EUR/USD
Higher timeframes
The situation hasn’t change significantly since yesterday. The pair continues to trade within the attraction and influence zones of the weekly levels (1.0972 – 1.0986). The nearest targets, testing and breaking of which could lead to a change in the situation, are still located in the following areas: for bears 1.0897–95 – 1.0866 (weekly and monthly medium-term trends + daily cloud), for bulls 1.1055 – 1.1107 (daily Ichimoku cross levels).
H4 – H1
On the lower timeframes, the pair is in a correction zone. The breakout of the weekly long-term trend (1.1020) and a reversal in the moving average could change the current balance of power. In this case, the focus for intraday movement will be the classic pivot points (1.1030 – 1.1057). The pair will then rise towards the daily resistance levels, and the outcome of the interaction with these levels may determine further developments. On the other hand, if activity shifts in favor of the bears, it will be important for them to break below the current upward correction (1.0953–44) and continue the downward movement. Support levels to consider are S2 (1.0930) and S3 (1.0907).
***
GBP/USD
Higher timeframes
The support of the weekly short-term trend (1.2754) has been tested. A rebound from this level will bring the pound back into the influence zone of the lower boundary of the monthly cloud (1.2893). Currently, this level strengthens the zone of daily resistances (1.2867 – 1.2931). A break and consolidation above this zone will create opportunities for further recovery and strengthening of bullish sentiment. If the pound loses the support of the weekly short-term trend (1.2754), events will unfold differently, and the next target for bearish players will be the testing of the daily cloud (1.2651 – 1.2577), reinforced by supports from higher timeframes (1.2629 – 1.2597).
H4 – H1
On the lower timeframes, bulls managed to push the pair into the attraction zone of the central pivot point of the day (1.2784). Continuing the ascent will lead the pair to the weekly long-term trend (1.2846), the breakout and reversal of which can change the current balance of power on the lower timeframes. If the corrective rise ends and the pair updates its low (1.2740), it will head towards the support levels of the classic pivot points (1.2728 – 1.2684 – 1.2628).
***
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)
The material has been provided by InstaForex Company – www.instaforex.com
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