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05.08.2020 10:09 AM
Technical analysis recommendations for EUR/USD and GBP/USD on August 5

EUR / USD

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The situation has not changed significantly over the last working day. Conclusions and expectations remain the same. At the moment, the pair is in the zone of attraction of the worked out weekly target (1.1695 - 1.1813), the monthly Senkou Span A (1.1740) and the daily Tenkan (1.1745). The influence of this zone can delay the development of movement and provoke consolidation. Going beyond it and restoring the upward trend (1.1909) will allow upward traders to consider new benchmarks, the main task being the rise to the upper border of the monthly cloud (1.2167). A consolidation below the zone of effective attraction (1.1695) will strengthen the opportunities for the development of a downward correction. In this case, the nearest reference points and supports will be the levels of the daily cross (1.1632 Fibo Kijun + 1.1547 Kijun) and the weekly Tenkan (1.1539).

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The key levels of the lower halves continue to join forces. Today, they are in a narrow range of 1.1776-88 (central Pivot level + weekly long-term trend). The expected uncertainty of the higher halves is already beginning to manifest itself on H1 in the alternating work of the pair above and below key levels. But working above 1.1776-88 provides some advantage for the bulls. Their first priority is to exit the correction zone (1.1909) and restore the upward trend. The classic pivot levels 1.1832 - 1.1861 - 1.1917 can act as resistances within the day today. A decline, consolidation and further work under the key H1 levels (1.176-88) will transfer the initiative and advantage to the bearish players, for whom it will be important to continue the downward movement (1.1696 minimum extreme).

GBP / USD

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The bears are trying to change the situation, and the bulls are trying to maintain the status quo. There were no significant changes in the situation with the pound over the past 24 hours. All conclusions and expectations have retained their relevance. It is important for upsiders to go beyond the current correction (1.3169) and break through the historical resistance of 1.3200. The downside traders need a deepening of the correction and its further development can secure consolidation below the nearest supports at 1.2964-42 (upper border of the weekly cloud + daily Tenkan).

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In the smaller halves, the pair continues to hold positions above the key levels. They are joining forces in the 1.3051-57 area (central pivot level + weekly long-term trend) today. This situation ensures that the advantage is retained on the side of the promoters. The resistance of the classic pivot levels 1.3123 - 1.3178 - 1.3250 serves as upward guidance within the day. With a decline and consolidation below 1.3051-57, initiative and advantages may shift to the side of the opponent, whose main task will be to update yesterday's low (1.2980). At the same time, further support can be noted at 1.2924 and 1.2869.

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

Evangelos Poulakis,
Analytical expert of InstaForex
© 2007-2024
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