EURUSD and GBPUSD: EURUSD is hovering around 1.08500

• From Monday to Wednesday, EURUSD was in an upward trend with the formation of a high at the 1.09460 level.
• During the Asian trading session, GBPUSD gained support at the 1.26400 level.

EURUSD chart analysis

From Monday to Wednesday, EURUSD was in an upward trend with the formation of a high at the 1.09460 level. There, we encounter resistance and see a drop to the 1.08300 level. During the Asian trading session, we managed to hold above that level and initiate a bullish impulse that pushed us to the 1.08600 level. If this kind of consolidation continues, we could expect to see continued recovery. Potential higher targets are 1.08800 and 1.09000 levels.

We need a negative consolidation and a break below the 1.08300 support level for a bearish option. Such a picture would mean that we will see a further pullback and a visit to the previous support zone. Potential lower targets are 1.08200 and 1.08000 levels.

GBPUSD chart analysis

During the Asian trading session, GBPUSD gained support at the 1.26400 level. With a new bullish impulse, we start a recovery and climb up to the 1.26850 level. Now, we need to maintain above the 1.26750 level in order to consolidate there and start the continuation on the bullish side. Potential higher targets are 1.27000 and 1.27200 levels.

For a bearish option, we need a negative consolidation and a new pullback of the pound below the 1.26600 level. Then, we would again have the opportunity to test the previous hunt at the 1.26400 level. A break below would lead to the formation of a new low, and that would bring us back to the movement zone from the beginning of the week. Potential lower targets are the 1.26200 and 1.26000 levels.