EURUSD and GBPUSD: Euro starts a new recovery

• During the Asian trading session, EURUSD consolidated around 1.05400 levels. 
• The GBPUSD pair fell to the 1.18000 level yesterday, and the previous time we were there was in November last year.

EURUSD chart analysis

During the Asian trading session, EURUSD consolidated around 1.05400 levels. Then, we saw a bullish impulse to the 1.05600 level. For now, we have resistance at that level and a pullback to the 1.05500 level. At 1.05000 pairs, it could get additional support from which we could start a bigger euro recovery.

Potential higher targets are 1.05750 and 1.06000 levels. We need a negative consolidation and a drop below the 1.05400 leva support for a bearish option. After that, we could expect to retest yesterday’s low at the 1.05240 level. A break below would mean a continuation of the European currency’s decline. A potential lower target is the 1.05000 level.

GBPUSD chart analysis

The GBPUSD pair fell to the 1.18000 level yesterday, and the previous time we were there was in November last year. During the Asian session, GBPUSD consolidated around 1.18400 levels. Below we see a break above and a continuation of the recovery to the 1.18800 level. If the current consolidation continues, we could expect the pound to continue its recovery for the rest of the day. Potential higher targets are 1.19000 and 1.19250 levels.

We need a negative consolidation and a new drop into the support zone around the 1.18200 level for a bearish option. A break below would limit us to a retest of support at the 1.18000 level. The inability to hold even there would lead to a continuation of the GBPUSD decline. Potential lower targets are 1.17800 and 1.17500 levels.