EURUSD and GBPUSD: EURUSD is rising above the 1.12000

• This week the EURUSD was in a strong bullish trend.
• During the Asian trading session, GBPUSD forms a new higher high at 1.31420.

EURUSD chart analysis

This week the EURUSD was in a strong bullish trend. The euro started on Monday at the 1.09650 level, and in the morning, we would like to see the formation of new higher highs at the 1.12430 level. The previous time EURUSD was at that level was in March last year. From that level, we are now seeing a pullback to the 1.12000 level, and here we are trying to hold and continue to grow.

We need a positive consolidation and a return to the zone around the 1.12500 level for a bullish option. Then we need a breakout above and try to hold up there. With a new bullish impulse, we would start the continuation of the recovery. Potential higher targets are 1.12600 and 1.12700 levels.

We need a negative consolidation and a drop below the 1.12000 level for a bearish option. Thus, we would make a break below the Alma30 trend line, and after that, the chances of a further pullback of EURUSD would increase. Potential lower targets are 1.11800 and 1.11600 levels.

GBPUSD chart analysis

During the Asian trading session, GBPUSD forms a new higher high at 1.31420. After that, the pair starts a pullback from that level and descends to the 1.30900 level. We manage to get support at that level and are back above the 1.31000 level.

Now we need a new bullish impulse that would push us to the 1.31500 resistance level. Then I need to see the test above and try to keep up there. If we succeed in this task, we could see continued growth in GBPUSD. Potential higher targets are 1.31750 and 1.32000 levels.

We need a negative consolidation and a new pullback to the 1.31000 support level for a bearish option. A fall below would signify a weakening pound and a potential continuation to the bearish side.