GBPUSD is back above 1.2600, what about EURUSD?
EURUSD was in retreat from 1.07870 to 1.07227 in the first two days of this week.
On Monday, we saw GBPUSD pull back to support at the 1.25184 level.
EURUSD chart analysis
EURUSD was in retreat from 1.07870 to 1.07227 in the first two days of this week. Yesterday afternoon, after forming this week’s low, the pair managed to consolidate and initiate a bullish consolidation, and we closed the day at the 1.07537 level.
During the Asian session, EURUSD successfully maintained above 1.07500 levels, which resulted in growth to 1.07740 levels. If this consolidation continues, the euro should rise to new daily levels.
Potential higher targets are 1.07800 and 1.07900 levels. For a bearish option, EURUSD must pull back below the 1.07500 support level.
This would break the previous bullish structure, increasing the pressure on the euro. The expected sequence of events is a further decline and pullback of this pair at lower levels. Potential lower targets are 1.07400 and yesterday’s support zone at the 1.07220 level.
GBPUSD chart analysis
On Monday, we saw GBPUSD pull back to support at the 1.25184 level. After that, the pound successfully launched a bullish consolidation from that level and closed yesterday at the 1.25950 level.
During the previous Asian trading session, the pair held above 1.26000, and we are now looking at a continuation to the bullish side. GBPUSD has already risen to the 1.26300 level, and we expect to see this pair at the 1.26500 level in the coming hours.
In that zone, we meet the EMA200, which could slow down the recovery. A breakthrough above would make our path to higher levels much easier. Potential higher targets are 1.26600 and 1.26800 levels.
For a bearish option, we need a pullback of the pound to 1.26000 this morning’s support. Pressured in that zone could lead to a breakout below and a new daily low formation. Potential lower targets are 1.25800 and 1.25600 levels.