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FX.co ★ Technical analysis and recommendations for EUR/USD and GBP/USD on July 23, 2021

Technical analysis and recommendations for EUR/USD and GBP/USD on July 23, 2021

EUR/USD

Technical analysis and recommendations for EUR/USD and GBP/USD on July 23, 2021

The bears try to maintain their advantage and although they failed to update the low yesterday, they still did not lose possession of the daily short-term after testing it. Today, the daily short-term trend (1.1814) is still the nearest important resistance. On the other hand, the next task of the bulls will be to eliminate the Ichimoku daily dead cross, with final levels located at 1.1864-90. But if the activity and performance return to bearish traders, then they will wait for the previous downward pivot points of 1.1695 - 1.1684 (monthly Fibo Kijun + the first target of the daily target for the breakdown of the cloud) and 1.1602 - 1.1619 (minimum extreme the past + 100% working out the daily target).

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Technical analysis and recommendations for EUR/USD and GBP/USD on July 23, 2021

For the time being, the favor in the smaller time frames also remains on the bears' side. The intraday downward pivot points are the support of the classic pivot levels (1.1741 - 1.1712 - 1.167). A consolidation above the key levels, which are joining forces in the area of 1.1786-89 (central pivot level + weekly long-term trend) today, will change the balance of forces acting on the hourly chart and strengthen the bullish mood. In this case, we can note the levels of 1.1815 - 1.1860 - 1.1889 (resistances of the classic pivot levels) as the next upward targets.

GBP/USD

Technical analysis and recommendations for EUR/USD and GBP/USD on July 23, 2021

The pair went into a deep upward correction after breaking through the target for the breakdown of the daily cloud and practically descending to the influence zone of the monthly short-term trend. At the moment, the levels of the daily Ichimoku cross (1.3740 Tenkan + 1.3785 Kijun) are being tested. The next important line is within the range of 1.3824-41 (weekly Fibo Kijun + the final line of the daily cross + H4 cloud). A consolidation above which will eliminate the daily dead cross and form an upward target on the H4 chart. In addition, the continuation of the current trend will contribute to the formation of potential in the weekly and monthly time frames.

Technical analysis and recommendations for EUR/USD and GBP/USD on July 23, 2021

The bulls managed to consolidate above the key levels in the smaller time frames and are currently retesting them. Today's key levels are set at 1.3705-47 (central pivot level + weekly long-term trend). The formation of the rebound during the retest will allow the bulls to continue restoring their positions. The next targets for an intraday growth are considered at 1.3803 - 1.3843 - 1.3899 (classic pivot levels). However, if the bears manage to consolidate below (1.3705-47) during the current testing of key levels, the advantage will be revised again. The support levels on the H1 chart can be noted at 1.3651 (S2) and 1.3611 (S3). The main task of the bears will be to update the low (1.3571) and restore the downward trend.

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Ichimoku Kinko Hyo (9.26.52) and Kijun-sen levels in the higher time frames, as well as classic Pivot Points and Moving Average (120) on the H1 chart, are used in the technical analysis of the trading instruments.

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