EURUSD and GBPUSD: EURUSD under pressure below 1.07900

EURUSD chart analysis

During the Asian trading session, EURUSD held above the 1.07700 level. Now, we see a bullish impulse that takes us above the 1.07800 level. The start of the EU session is optimistic for the euro, and we could see further recovery. At the 1.07870 level, we will test the weekly open price, and we need a break above if we plan to go higher. Additional pressure on EURUSD is found in the EMA200 moving average at the 1.08000 level.

Potential higher targets above these levels are 1.08100 and 1.08200. For a bearish option, we need a negative consolidation and pullback below the Asian support at the 1.07700 level. By doing so, the pair would create a new daily low and confirm the bearish momentum. Potential lower targets are 1.07600 and 1.07500 levels.

GBPUSD chart analysis

Yesterday, we saw GBPUSD pull back to 1.25718 at the start of the US session. The pair formed this week’s higher low there and initiated a bullish consolidation. During the Asian session, we saw movement in the 1.26100-1.26250 range. With the beginning of the EU session, the pound gains strength and makes a breakthrough to the 1.26300 level. Now, in this zone, we encounter resistance in the EMA200 moving average, and we need a break above for further resistance to the pound.

Potential higher targets are 1.26600 and 1.26800 levels. We need a negative consolidation and pullback below this morning’s support at the 1.26100 level for a bearish option. Such a move would direct GBPUSD towards yesterday’s low at 1.25800. A new test of that level would significantly increase the bearish pressure. Potential lower targets are 1.25600 and 1.25400 levels.

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