Technical analysis recommendations for EUR/USD and GBP/USD on July 31, 2020

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Technical analysis recommendations for EUR / USD and GBP / USD on July 31

EUR / USD

The upward trend is gaining impulse. The consolidation of the targets 1.1695 – 1.1740 – 1.1813 (weekly target for the breakout of the Ichimoku cloud + the lower border of the monthly cloud) caused only a slight slowdown on the daily time frame. Yesterday, the euro was able to close above these boundaries. Today is the last day of the working week and month. In order to maintain prospects and consolidate what has been achieved, it is advisable for upward players to defend their current results or strengthen their positions. At the same time, large-scale planned profit-taking may lead to revenge of the bears. The passed levels 1.1813 – 1.1740 – 1.1695 are currently acting as nearest supports, and the next upward reference is the upper border of the monthly Ichimoku cloud (1.2167).

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In the lower halves, bulls use the support of all analyzed technical instruments. An upward trend is in its active phase. Now, the first resistance of the classic Pivot levels (1.1886) has been tested, the next reference points are 1.1927 (R2) and 1.2004 (R3). The key support for the lower time frames are located today at 1.1809 (central pivot level) and 1.1742 (weekly long-term trend).

GBP / USD

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The players to increase are in trend, and it is better not to fall under the “trend train”. A slight daily slow down was noted when entering a weekly cloud, at its lower border (1.2735), but the upper border (1.2970), despite the fact that it is also a fairly strong resistance level, remained unnoticed. Thus, a slight inhibition can be considered only in the lowest halves (H1 – H4). The trend continues. The nearest upward target from Ichimoku is now located at 1.3570 (the lower border of the monthly cloud), after which the target for the break of the weekly cloud, formed by this moment, will take over. The nearest support is now the passed upper border of the weekly cloud (1.2970).

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The advantages are entirely on the side of the bullish players. The upward trend is now in its active phase and bullish traders are testing the first resistance of the classic Pivot levels (1.3148). Further, R2 (1.3204) and R3 (1.3307) will serve as resistance and reference points within the day. The key supports for the current day at H1 are located today at 1.3045 (central pivot level) and 1.2931 (weekly long term trend).

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

The material has been provided by InstaForex Company – www.instaforex.com

Source:: Technical analysis recommendations for EUR/USD and GBP/USD on July 31

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