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FX.co ★ EUR/USD and GBP/USD: Technical Analysis for August 23

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Forex Analysis:::2024-08-23T10:31:38

EUR/USD and GBP/USD: Technical Analysis for August 23

EUR/USD

EUR/USD and GBP/USD: Technical Analysis for August 23

Higher time frames

Even though the pair did not directly reach the lower boundary of the monthly cloud (1.1184), the strength of the monthly resistance still contributed to a slowdown and the emergence of a downward correction on the daily time frame. As a result, for bulls, the key level for further advancement remains the 1.1184 mark. Conversely, for bears, it is important to continue developing the downward movement, with primary support levels to watch being the supports of the daily Ichimoku golden cross (1.1044 – 1.1023 – 1.0977 – 1.0930).

EUR/USD and GBP/USD: Technical Analysis for August 23

H4 – H1

Bullish traders continue to hold the upper hand in lower time frames. However, a decline is observed, and the pair trades within a corrective zone. Currently, the market is near the central pivot level (1.1125). If the movement turns towards developing bullish sentiment, the intraday resistances of the classic pivot levels (1.1152 – 1.1192 – 1.1219) may come into play. Conversely, if bearish sentiment strengthens, the bears will need to break through the support of the weekly long-term trend (1.1094), after which they will face interactions with the support levels of the classic Pivots (1.1085 – 1.1058 – 1.1018).

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GBP/USD

EUR/USD and GBP/USD: Technical Analysis for August 23

Higher time frames

The pair has again tested the nearest daily high and is close to testing the 2023 high (1.3141). The outcome of this interaction may determine the potential for further developments. A breakout would lead to new opportunities for the bulls. Conversely, a rejection would result in another halt in the development of bullish sentiment and become the basis for the pair to return to the influence zone of the Ichimoku monthly cloud, whose upper boundary is currently at the level of 1.2987.

EUR/USD and GBP/USD: Technical Analysis for August 23

H4 – H1

Bullish traders hold the advantage on lower time frames as well. They are driving the rise, overcoming obstacles in the lower time frames, such as the resistance levels of the classic pivot points (1.3118 – 1.3150 – 1.3171). Key levels in the current situation serve as main reference points in case of a bearish correction. Today, these levels are at 1.3097 (central pivot point of the day) and 1.3027 (weekly long-term trend). The classic pivot point levels (1.3065 – 1.3044) may provide intermediate support levels on the way down to the trend.

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This technical analysis is based on the following ideas:

Larger time frames - Ichimoku Kinko Hyo (9.26.52) + Fibo Kijun levels

H1 – classic pivot points + 120-period Moving Average (weekly long-term trendline)

Analyst InstaForex
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