EURGBP and EURCHF: EURGBP pulling back below 0.85700

• EURGBP rose to the 0.86023 level on Friday, forming a weekly high there.
• During the Asian trading session EURCHF is in a bullish consolidation at 0.96985. 

EURGBP chart analysis

EURGBP rose to the 0.86023 level on Friday, forming a weekly high there. After that, there was a sharp pullback to support at the 0.85775 level. During the Asian trading session, the pair was quite calm, moving in the 0.85750-0.85800 range. At the start of the EU session, the euro begins to weaken and we see a retreat to the 0.85650 level. We have fallen below the EMA50 moving average and are under some bearish pressure.

Potential lower targets are 0.85650 and 0.85600 levels. Additional support in the zone around 0.85575 is the EMA200 moving average. With the return above the 0.85800 level, we return above the weekly open price, and we are again on the bullish side. Then, we would have to hold on up there in order to form a bottom from which we could easily start a positive consolidation for recovery. Potential higher targets are 0.85850 and 0.85900 levels.

EURCHF chart analysis

During the Asian trading session EURCHF is in a bullish consolidation at 0.96985. In the previous hour, we climbed to 0.97250, where we stopped. In this hour we are looking at a pullback that could take us down to the EMA50 at the 0.97150 level. With the new support, we will again have the opportunity to continue on the bullish side. Potential higher targets are 0.97300 and 0.97400 levels.

We need a pullback to the weekly open price at 0.96985 for a bearish option. With pressure on that level could drop EURCHF at a new daily low. After that, the pair would be directed towards lower levels, and the potential lower targets are 0.96900 and 0.96800 levels. Additional support in the zone around 0.96700 is in the EMA200 moving average.