EUR/USD and GBP/USD technical analysis on July 4, 2022

EUR/USD

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Higher time frames

The euro bulls failed to show any impressive results last week and the same is true about bears. So, the pair stayed within the boundaries of the previous weekly consolidation zone. The downward target and support are found at the low extremum points of 1.0349 – 39. The upper boundary is formed by the daily Cross pattern, the weekly short-term trend at 1.0568, and monthly support at 1.0539. If the price manages to settle firmly beyond these boundaries, we need to reevaluate the chart to see further prospects.

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H4 – H1

After hitting a new low on Friday, the pair is now going through an upside correction. Bears are in control of the market on lower time frames. The key levels of 1.0426 (central pivot point of the day) and 1.0493 (weekly long-term trend) serve as upward targets. Consolidation above these levels and a reversal of the moving average can change the current market balance. In this case, other intraday targets will be the resistance zones found at the standard pivot levels of 1.0546 (R2) and 1.0607 (R3). If the pair finishes the correction and resumes its decline, the downward targets on the intraday chart will be the resistance found at the standard pivot levels of 1.0367 – 1.0306 – 1.0247.

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GBP/USD

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Higher time frames

Last week, bulls failed to push the pair through the resistance level of 1.2300 (weekly short-term trend). At the same time, bears managed to retest the mark of 1.2000. Those of them who have enough strength to bring the price out of the mentioned boundaries will gain a strong foothold and develop a further movement.

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H4 – H1

A decline that took place on Friday ended with an upside correction. Buyers managed to bring the price up and now use the central daily pivot point of 1.2082 as the main support. The next target is seen at the weekly long-term trend of 1.2165. Consolidation above this level and a reversal of the moving average will change the market balance on lower time frames in favor of the bulls. In this case, their intraday targets will be the resistance areas located at the standard pivot levels of 1.2189 – 1.2284 – 1.2391. Bear will need to return to the level of 1.1975 to resume the downtrend. Other downward targets on the intraday chart are located at the level of 1.1987 – 1.1880 – 1.1785 (resistance at the standard pivot points).

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This technical analysis is based on:

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

For H1: Pivot Points (standard) + 120-day Moving Average (weekly long-term trend)


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