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02.08.2021 01:46 PM
Technical analysis recommendations for EUR/USD and GBP/USD for August 2

EUR/USD

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The bulls at the close of last week issued a rebound from the support of the trend line, at the same time, they confirmed the slowdown during the monthly corrective decline. As a result, the euro has indicated some potential for further strengthening of bullish sentiment. Using this potential can allow bulls to test the subsequent resistances and targets at 1.1920 (weekly Fibo Kijun) and 1.1985 (weekly Ichimoku Cloud). The attraction and support are now provided by the levels of the daily Ichimoku Cloud (1.1890 – 1.1848 – 1.1831).

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The main advantage on the lower time frames now remains on the side of the bulls, but at the same time, the pair has been in the zone of a downward correction for a long time. If the bulls manage to stay above the central pivot point (1.1876) and also overcome the resistance of 1.1900 – 1.1909 (R1 + the maximum of last week), then within the day, the next targets for the bulls will be 1.1933 (R2) – 1.1957 (R3). The loss of support for the central pivot point (1.1876) will direct the situation to test the second important level for H1 – the weekly long-term trend (1.1841). Fixing it below can change the current balance of power. In this case, it is better to re-evaluate the situation.

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GBP/USD

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The bulls managed to close the month of July optimistically. They formed a rebound, which can become the basis for stopping the development of a monthly downward correction. The appearance of new upward prospects in the current situation can be expected after overcoming the important resistance zone of 1.3958-90 (the upper limit of the monthly cloud + the daily cloud + the final boundary of the weekly Ichimoku Cloud). Fixing higher will affect the current balance of power and form new upward targets. Support and attraction are now provided by weekly levels, testing of which was started last week at 1.3910-1.3881 (Tenkan + Kijun) and 1.3830 (Fibo Kijun), then the daily support levels are located.

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The bulls retain the main advantage, their targets within the day today are located at 1.3960 – 1.4019 – 1.4055 (resistance of classic pivot points), but the situation has already descended into the zone of influence of the key levels of the lower halves of 1.3891-1.3924 (weekly long-term trend + central pivot point). A breakdown of which will open the way for the bears to support at 1.3865 (S1) – 1.3829 (S2) – 1.3770 (S3).

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In the technical analysis of the situation, the following are used:

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

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

Evangelos Poulakis,
Analytical expert of InstaForex
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