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FX.co ★ Technical analysis recommendations for EUR/USD and GBP/USD on August 18

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Forex Analysis:::2020-08-18T08:54:50

Technical analysis recommendations for EUR/USD and GBP/USD on August 18

Technical analysis recommendations for EUR/USD and GBP/USD on August 18

EUR / USD

The pair continues to remain in the correction zone, however, the upside has been taking the lead for the last few days. To implement the potential of July, as well as to return to bullish activity and performance, it is now important not only to update the maximum correction (1.1916), but also to securely gain a foothold higher. In this case, the reference point will be the upper border of the monthly cloud (1.2167). If upside traders fail to achieve a full recovery of the upward trend, then the role of support and attraction still belongs to the area of 1.1813 - 1.1740 - 1.1695 (worked out weekly target + monthly Senkou Span A + daily Tenkan + Fibo Kijun).

At the moment, the upward trend on the hourly time frame is in its active phase. The bulls form new highs and are fully supported by all analyzed technical elements. The intraday upside targets are now 1.1912 (R2) and 1.1942 (R3). The key supports for the lower halves today are located at 1.1860 (central pivot level) and 1.1815 (weekly long-term trend), while intermediate support can be noted at 1.1838 (S1).

GBP / USD

The players to rise do not give up trying to leave the correction zone. The maximum extremum (1.3185) is strengthened by the historical level (1.32). A reliable consolidation above will allow considering the next reference point - the resistance of the lower border of the monthly cloud (1.3601). The pair will return back to the plans to implement the corrective decline if they failed to fully restore the upward trend. Significant benchmarks in the direction of strengthening bearish mood are 1.3095 (daily short-term trend) - 1.2902 (weekly Senkou Span A + daily Fibo Kijun) - 1.2832 (daily Kijun) - 1.2711-35 (accumulation of levels of different time intervals).

To date, the upward trend of the lower halves has reached the final resistance of the classic pivot levels (1.3171). The next important reference point is the resistance zone of the higher halves (1.3185 - 1.32). If the correction develops, the key supports are now located in the area of 1.3098-78 (central Pivot level + weekly long-term trend). Anchoring below will change the current balance of power in the lower halves, while the bullish players will lose support for the daily short-term. This state of affairs will contribute to the development of a downward correction and further strengthening of bearish mood.

Ichimoku Kinko Hyo (9.26.52), Pivot Points (Classic), Moving Average (120)

Analyst InstaForex
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