EUR/USD and GBP/USD: Technical analysis for July 20
July 20, 2023 12:22 pm
EUR/USD
Higher timeframes
The attraction force of the monthly level at 1.1216 continues to hold back the situation from further development. If bearish players manage to overcome it, the supports on their path will be the daily Ichimoku cross levels (1.1110 – 1.1040 – 1.0984), reinforced by weekly boundaries (1.0984 – 1.0956). However, if bullish players find the strength to break away from the attraction of 1.1216 and continue the ascent, the nearest reference point for them on higher timeframes will be the lower boundary of the monthly cloud (1.1523).
H4 – H1
On lower timeframes, the market has fallen below the key level of 1.1225 (weekly long-term trend) and is executing a retest. This level is reinforced by higher timeframes, so the outcome depends on the ability to leave the attraction zone of 1.1216–25. Intraday reference points for directional movement today can be noted at 1.1170 – 1.1140 – 1.1104 (support levels of classic pivot points) and 1.1236 – 1.1272 – 1.1302 (resistance levels of classic pivot points).
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GBP/USD
Higher timeframes:
Yesterday, the decline from previous days continued. The pair faced support zones, led by the lower boundary of the monthly cloud (1.2893). The result of this interaction may determine further developments. Bullish players targets a rebound and return to the upper boundary of the monthly cloud (1.3142); bearish players needs a breakdown, liquidation of the daily Ichimoku cross (1.2866 – 1.2800), and test the area of 1.2760 – 1.2724 (monthly Fibo Kijun + weekly short-term trend).
H4 – H1
As of writing, the main advantage on the lower timeframes is on the bearish side. Further decline will lead the pair to the support levels of classic pivot points (1.2855 – 1.2774 – 1.2682). However, if the supports from higher timeframes hold the situation from further decline, it will be crucial on lower timeframes to return key levels—such as 1.2947 (central pivot point of the day) and 1.3050 (weekly long-term trend)—to the bulls. Consolidation above and reversal of the moving average will shift the current balance of power, creating prerequisites for strengthening bullish sentiments.
EUR/USD
Higher timeframes
The attraction force of the monthly level at 1.1216 continues to hold back the situation from further development. If bearish players manage to overcome it, the supports on their path will be the daily Ichimoku cross levels (1.1110 – 1.1040 – 1.0984), reinforced by weekly boundaries (1.0984 – 1.0956). However, if bullish players find the strength to break away from the attraction of 1.1216 and continue the ascent, the nearest reference point for them on higher timeframes will be the lower boundary of the monthly cloud (1.1523).
H4 – H1
On lower timeframes, the market has fallen below the key level of 1.1225 (weekly long-term trend) and is executing a retest. This level is reinforced by higher timeframes, so the outcome depends on the ability to leave the attraction zone of 1.1216–25. Intraday reference points for directional movement today can be noted at 1.1170 – 1.1140 – 1.1104 (support levels of classic pivot points) and 1.1236 – 1.1272 – 1.1302 (resistance levels of classic pivot points).
***
GBP/USD
Higher timeframes:
Yesterday, the decline from previous days continued. The pair faced support zones, led by the lower boundary of the monthly cloud (1.2893). The result of this interaction may determine further developments. Bullish players targets a rebound and return to the upper boundary of the monthly cloud (1.3142); bearish players needs a breakdown, liquidation of the daily Ichimoku cross (1.2866 – 1.2800), and test the area of 1.2760 – 1.2724 (monthly Fibo Kijun + weekly short-term trend).
H4 – H1
As of writing, the main advantage on the lower timeframes is on the bearish side. Further decline will lead the pair to the support levels of classic pivot points (1.2855 – 1.2774 – 1.2682). However, if the supports from higher timeframes hold the situation from further decline, it will be crucial on lower timeframes to return key levels—such as 1.2947 (central pivot point of the day) and 1.3050 (weekly long-term trend)—to the bulls. Consolidation above and reversal of the moving average will shift the current balance of power, creating prerequisites for strengthening bullish sentiments.
***
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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