EURUSD and GBPUSD: EURUSD pulled back to testing 1.08000

• This week’s high for EURUSD was formed yesterday at the 1.08660 level.
• During the Asian session, GBPUSD was in retreat from 1.26860 levels. 

EURSUD chart analysis

This week’s high for EURUSD was formed yesterday at the 1.08660 level. We stop in that zone and start retreating. During the Asian trading session, we continued the bearish trend and stopped at the support at 1.07966. We managed to stay there and slightly recover to the 1.08150 level. Here we are now testing the EMA200 moving average and need a break above to get back to the bullish side.

Potential higher targets are 1.08200 and 1.08300 levels. If we fail to move back above, the EURUSD will be forced to retreat. We are again looking at this morning’s low as potential support. A new test could easily push the pair below and thus form a new low. Potential lower targets are 1.07900 and 1.07800 levels. At the beginning of the US session, the news on the US GDP will be announced, which could determine the further trend for the EURUSD.

GBPUSD chart analysis

During the Asian session, GBPUSD was in retreat from 1.26860 levels. The pair dropped to support at the 1.26200 level. We managed to hold above it and recover to the 1.26550 level. Here, we are now looking for the support of the EMA200 moving average so that, with its help, we can start a new bullish consolidation and return to the previous bullish trend. Potential higher targets are 1.26700 and 1.26800 levels.

If we fail to hold above the EMA200 and 1.26500 levels, GBPUSD could initiate a deeper pullback. Thus, we would see a drop to a new low and thus confirm the bearish momentum to continue to the bearish side. Potential lower targets are 1.26200 and 1.26000 levels.