Technical recommendations for EUR/USD and GBP/USD on August 25
EUR/USD
The bulls tried to restore the upward trend last week, but the rival quickly returned the euro to the previous correction zone and managed to close the week with a power of its moods. As a result, the pair is working in the attraction zone again, working out 1.1813 (weekly target) 1.1740 (monthly Senkou Span A) and 1.1695 (daily cross levels). Thus, support levels will now continue to try to keep the situation from developing and deepening correction. Previously, they managed to do this on the daily (D1) chart. Despite the fact that the daily Chinkou reached the zone of maximum vertical distance from the price chart and then there were conditions for the development of a correction, the players to decline still limited themselves to the support levels located at 1.1813 - 1.1740 - 1.1695. At the moment, the Chinkou line has already reached the zone of maximum vertical distance on the weekly TF, while at the same time, the conditions for the development of a downward correction remain, the first reference point of which is the weekly short-term trend (1.1575). The whole question now is whether the downside traders will be able to reach a deep weekly correction, or whether the rival in August will be able to hold on to the monthly cloud (1.1740), which it hit in July, and will insist on plans to ascend to the upper limit of the monthly cloud (1.2167).
On the hourly (H1) chart, there is currently a struggle for the central pivot level (1.1807). If the players manage to increase, the next reference point will be the weekly long-term trend (1.1853). A fixation above these levels will allow players to increase their advantage in the lower halves. Next, the main task will be to restore the upward trend by overcoming the maximum extreme (1.1966). The support for classic pivot levels is currently located at 1.1765 - 1.1741 - 1.1699 and are strengthened by the support levels of the higher halves, so fixing below can significantly help the players to decline in the future.
GBP / USD
The level of 1.32 continues to confirm its historical significance. Despite the potential in July, the bullish players failed to implement a break down and so continued the rise. As a result, the pair lost support for the daily short-term trend (1.3147) again and is in the downward correction zone. The next task of players on the downside is to eliminate the daily golden cross, the levels of which (1.3028 - 1.2954 - 1.2881) have already started preparing for this process. The daily Ichimoku cross in the current situation has strengthened from the weekly cloud (1.2874), so the elimination of the cross and return to the weekly cloud will contribute to the appearance of new downward prospects and further increase bearish mood.
In the smaller halves, the pound retested the central pivot level which was overcome a few hours ago (1.3088). The next reference point is the weekly long-term trend (1.3150). A consolidation above will change the balance of forces at the hourly (H1) chart and allow us to think about restoring the upward trend (1.3266). The return of bearish moods and the renewal of yesterday's low (1.3053) will bring back the relevance of the supports, which are located today at 1.3027 (S1) - 1.2993 (S2) - 1.2932 (S3).
Ichimoku Kinko Hyo (9.26.52), Pivot Points (Classic), Moving Average (120)
