EURGBP and EURCHF: EURGBP close to testing Friday’s low

• During the Asian trading session, EURGBP tried to hold above the 0.85450 level but failed. 
• EURCHF recovers from Friday’s drop to 0.96776 level. 

EURGBP chart analysis

During the Asian trading session, EURGBP tried to hold above the 0.85450 level but failed. A bearish consolidation followed and a drop to 0.85300 and now we are very close to testing last week’s low at the 0.85285 level. We are getting closer to slipping below to a new April low with the next impulse. Potential lower targets are 0.85250 and 0.85200 levels.

We need a new positive consolidation and a return to the 0.85450 level for a bullish option. Then, we need to hold there and try to move above the EMA50 moving average. If we succeed in that, we will have the opportunity to see recovery. Potential higher targets are 0.85550 and 0.85600 levels. We have additional resistance in the zone around 0.85600 in the EMA200 moving average.

EURCHF chart analysis

EURCHF recovers from Friday’s drop to 0.96776 level. During the Asian trading session, we climbed above 0.97300 and are successfully holding above that level for now. We need an impulse that would take us above 0.97400 and thus form a new daily high. We would get support from the EMA50 moving average and it would be easier to continue to the bullish side.

Potential higher targets are 0.97500 and 0.97600 levels. EMA200 is up in the zone at around 0.97700 levels. We need a negative consolidation and pullback down to the 0.97100 level for a bearish option. This is where we would test this morning’s support levels. By falling below it, we could threaten the 0.97000 level. Potential lower targets are 0.96900 and 0.96800 levels.