16.07.202113:30 Forex Analysis & Reviews: Technical analysis and recommendations for EUR/USD and GBP/USD on July 16

EUR/USD

The day before, the bears failed, the downward movement was stopped, and the pair returned below the resistance of the daily short-term trend (1.1833). After that, the attraction and influence of the daily Tenkan did not allow the bulls to further rise. As a result, another stop was observed in the directional movement and a period of reflection. It should be noted that updating the low (1.1772) and closing the week below it can end the week with a bearish advantage, as well as create prerequisites for continuing the decline to the targets set at 1.1695 - 1.1619 (monthly Fibo Kijun + daily target for the breakout of the cloud).

Alternatively, a consolidation above the daily short-term (1.1833) may serve as a continuation of the daily upward correction. Here, the upward pivot point is a wide resistance zone, starting from 1.1920 (daily and weekly Fibo Kijun).

The pair in the smaller time frames has been around the key levels for a long time, which are combining their forces in the area of 1.1819-33 (central pivot level + weekly long-term trend) today. And even the analyzed technical indicators now refuse to take sides. At the moment, uncertainty dominates on the H1 chart. If a decline is implemented, we can consider the intraday pivot points at 1.1787 - 1.1764 - 1.1732 (classic pivot levels). But if the upward traders caught the range of 1.1819-33, then the resistances of the classic pivot levels will most likely participate in the further recovery of bullish positions (1.1842 - 1.1874 - 1.1897).

GBP/USD

The range of 1.3883 - 1.3906 (weekly medium-term trend + daily Fibo Kijun) was not broken through again, so the pair returned to the support levels of 1.3820 - 1.3793 (daily short-term trend + the final border of the weekly golden cross). The breakdown of which and the continuation of the decline will open the way to the downward targets of 1.3731 (minimum extremum) and 1.3636-98 (target for the breakdown of the daily cloud). The week will be closed today, but the weekly chart indicates uncertainty and consolidation.

At the moment, the pound sterling in the smaller time frames is below the key levels of 1.3851-42 (central pivot level + weekly long-term trend), which determines some bearish advantage. Technical indicators also support bears. If the decline continues, the intraday targets can be noted at 1.3786 - 1.3748 - 1.3692 (support for the classic pivot levels).

But if we manage to consolidate above the range of1.3851-42, then the resistances of the classic pivot levels set at 1.3880 - 1.3936 - 1.3974, will be relevant again.

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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.