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Technical analysis recommendations for EUR/USD and GBP/USD on August 20
EUR / USD
The players to decline absorbed all the efforts of the opponent and returned to the zone of the previous correction. Ahead of the support is 1.1813 - 1.1740 - 1.1695 (worked out weekly target + monthly Senkou Span A), which helped the upside traders to keep the situation and avoid the development of a deep correction. At the moment, the daily gold cross has joined the supports. This accumulation of support levels will continue to try to defend and preserve the interests of players for an increase, therefore, any level may have a slowdown and a struggle for future prospects. A consolidation below (1.1695) will significantly affect the balance of power and require a new, more detailed assessment of the situation.
In the current situation, it was important for bulls to limit the depth of the correction. Failed key support of lower halves was lost yesterday. As a result, on H1,the advantage is now held by players on the downside. It will not be easy to restore bullish positions due to the scale of the decline. Significant upward targets can be noted today at 1.1874-67 (central pivot level + weekly long-term trend) - 1.1917 (R1) - 1.1966 (correction maximum). In case of strengthening of bearish moods and the continuation of the decline, the intraday support will be the classic Pivot levels 1.1794 - 1.1751 - 1.1671. These levels are also confirmed in the upper halves, so overcoming them will be particularly important for future prospects.
GBP / USD
The bulls failed to realize the breakout of the strong, historically proven level. As a result, we have a large-scale and effective return of bearish sentiment. The downside traders, upon rebounding from the level of 1.32, formed a daily reversal candlestick pattern, returned to the zone of the previous correction and closed the day below the daily short-term trend (1.3135). Even pause and respite are not able to quickly return bullish prospects now. Confirmation of bearish moods and opportunities in a weekly format will allow considering the conquest of the following downside targets - 1.2890-1.2902 (daily Kijun + weekly Senkou Span A) - 1.2711-55 (monthly Fibo Kijun + weekly Tenkan + Senkou Span B).
The depth of yesterday's decline helped the short-term players get hold of all the technical tools used for analysis. As a result, the current advantage in the lower halves is on the side of the players to decrease. Support for the classic Pivot levels 1.3036 - 1.2976 - 1.2861 serve as pivots for the continuation of the decline. Today, key levels on H1 are joining forces around 1.3130-51 (central Pivot level + weekly long-term trend). Further, to restore the positions of players on the increase, the value will be 1.3211 (R1) and 1.3266 (maximum correction).
Ichimoku Kinko Hyo (9.26.52), Pivot Points (Classic), Moving Average (120)
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