EURUSD and GBPUSD: EURUSD remains below 1.05700 level

• On Tuesday, we saw the formation of a new high for EURUSD at the 1.06946 level.
• This week’s bullish rally GBPUSD was stopped at the 1.22888 level.

EURUSD chart analysis

On Tuesday, we saw the formation of a new high for EURUSD at the 1.06946 level. At that level, the euro encounters resistance and begins to retreat, first below 1.06000, then below 1.05500. The fall was stopped yesterday at the 1.05218 support level. This level coincides with last week’s support level. After that, the pair starts a bullish consolidation and recovers to 1.05700.

There, we encounter resistance, and EURUSD makes a bearish impulse and retreats to the 1.05540 level. We are again facing the previous low. A new visit to that zone could produce a breakout below and the formation of a new low. Potential lower targets are 1.05100 and 1.05000 levels. For a bullish option, we need a break below the 1.05800 level. Thus, we would move above the EMA50 moving average and get its support. Potential higher targets are 1.06000 and 1.06200 levels.

GBPUSD chart analysis

This week’s bullish rally GBPUSD was stopped at the 1.22888 level. There, we encounter resistance, and the pair begins to retreat. In the first few hours, the pound dropped to the 1.21600 level and tried to get the first support there. It failed to do so, and the pullback continued below 1.21000, forming a new three-week low at the 1.20695 level.

After that, we see a consolidation in that zone that created a bullish impulse and triggered a bullish option. This consolidation moved us to the 1.21400 resistance level. We need a break above to continue further to the bullish side. Potential higher targets are 1.21600 and 1.21800 levels.

Additional resistance in the zone around 1.21600 is the EMA50 moving average. We need a negative consolidation and pullback to the previous low at the 1.20695 level for a bearish option. Potential lower targets are 1.20600 and 1.20400 levels.