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FX.co ★ Technical analysis recommendations for EUR/USD and GBP/USD on February 16

Technical analysis recommendations for EUR/USD and GBP/USD on February 16

EUR/USD

Technical analysis recommendations for EUR/USD and GBP/USD on February 16

Any important changes were not observed. On Monday, the euro stayed in a small range and maintained its position below the resistance levels of 1.2150-70 (weekly short-term trend + historical level). In turn, the levels of the daily Ichimoku cross (1.2122 - 1.2087 - 1.2051-56), which is strengthened by the weekly Fibo Kijun (1.2064), provide support, attraction and influence. After breaking through the resistances, the price will move to the next pivot point: the upper border of the daily cloud (1.2222) and the target for the breakdown of the H4 cloud (1.2219-48).

Technical analysis recommendations for EUR/USD and GBP/USD on February 16

The favor in the smaller time frames is still on the bulls' side, which is seen above the key levels 1.2130-23 (central pivot level + weekly long-term trend). Today, the resistances of the classic pivot levels 1.2158 (R2) and 1.2170 (R3) coincide with the resistances (1.2150-70) in the upper time frame. As a result, their strength and values are joined. If the key supports (1.2130-23) in the H1 chart breaks down, the current situation will change. Here, the classic pivot levels 1.2114 (S1) - 1.2102 (S2) - 1.2086 (S3) will serve as intraday supports.

GBP/USD

Technical analysis recommendations for EUR/USD and GBP/USD on February 16

The resistance of the initial weekly target for the breakdown of the Ichimoku cloud (1.3904) was tested, however, the bulls failed to close above it. Today, the interaction process remains and a new maximum of movement is indicated again. If the resistance target will be broken, it will open the way to the level of 1.4181. Currently, the support in the higher time frames is quite deep (1.3758 area), so it may not be important.

Technical analysis recommendations for EUR/USD and GBP/USD on February 16

The bulls continue to take the initiative. In this case, it is fair to note the upward targets set at 1.3959 (R2) and 1.3999 (R3). However, there was a correctional decline for the pair during the last few hours. For this movement, we can consider the key support levels in the H1 chart located at 1.3889 (central pivot level) and 1.3843 (weekly long-term trend). If the pair breaks down and consolidates under, the bears can take the advantage.

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The following methods are used in the technical analysis of the situation:

Higher time frames – Ichimoku Kinko Hyo (9.26.52) + Fibo Kijun levels

H1 – Pivot Points (classic) + Moving Average 120 (weekly long-term trend)

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade
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