EURUSD and GBPUSD: Euro continues to recover above 1.07500

• During the Asian trading session, EURUSD traded slightly above the 1.07000 level. 
• During the Asian trading session, GBPUSD continues to recover.

EURUSD chart analysis

During the Asian trading session, EURUSD traded slightly above the 1.07000 level. With a new bullish impulse, EURUSD moved above the 1.07500 level. Now we are trying to hold on to that level in order to start at the 1.08000 level and thus move away from the previous lows.

We need a negative consolidation and a drop back to 1.07000 levels for a bearish option. A drop below would increase bearish pressure, which could lead to further declines. Potential lower targets are 1.06500 and 1.06000 levels. Today’s German CPI data showed that inflation is easing, which could help the European currency.

GBPUSD chart analysis

During the Asian trading session, GBPUSD continues to recover. We found support at the 1.20500 level and have been in a bullish consolidation ever since. The pair quickly found itself above the 1.21000 level, and now we are close to the 1.21500 level. Soon we could find ourselves above that level, and then it is necessary to keep up there.

If we succeed in that, the potential higher targets are 1.22000 and 1.22500 levels. We need a negative consolidation and pullback down to the 1.20000 level for a bearish option. A break below would add to the bearish pressure, and the pound would likely fall further. Potential lower targets are 1.19500 and 1.19000 levels.