EURGBP and EURCHF: Euro in pullback against GBP and CHF

• Yesterday, we saw EURGBP fall to a new weekly low at 0.85472.
• This week saw a slowdown in the previous bullish consolidation and EURCHF was mostly moving in a sideways channel. 

EURGBP chart analysis

Yesterday, we saw EURGBP fall to a new weekly low at 0.85472. After the previous bearish consolidation and the drop below the 0.85750 support level, a drop to yesterday’s low followed. We then managed to get that support and recover in the short term to the 0.85700 level. Here, we encounter new resistance, and additional pressure is created by the EMA200, which pushes us below it. The euro started to retreat and fell to the 0.85500 level this morning.

We were close to testing the weekly low but remained a step above. Potential lower targets are 0.85450 and 0.85400 levels. For a bullish option, we need a positive consolidation and a move back up to 0.85700 and above the EMA200 moving average. Then, we have to hold up there and start a new impulse to the bullish side from there. Potential higher targets are 0.85750 and 0.85800 levels.

EURCHF chart analysis

This week saw a slowdown in the previous bullish consolidation and EURCHF was mostly moving in a sideways channel. On Tuesday morning, a weekly high was formed at the 0.98358 level, which we failed to test again. In the past two days, the pair has been trying to hold above the 0.98000 level but is under increasing pressure to break below and fall to a new low.

In the zone around the 0.97900 level, we encounter the EMA200, which could slow down this pullback. If we fail to stay above it, a drop to a new three-day low will follow. Potential higher targets are 0.97800 and 0.97700 levels. We need to go back up to the 0.98200 level for a bullish option. By crossing above that level, we go to a two-day high and thus increase the chances for further growth.