EURUSD and GBPUSD: everyone is waiting for the ECB report
- Pair EURUSD fell to 1.05160 yesterday, the lowest in the previous two months.
- During the Asian trading session, GBPUSD hovered around 1.20800 levels.
EURUSD chart analysis
Pair EURUSD fell to 1.05160 yesterday, the lowest in the previous two months. The Euro manages to consolidate and stop the decline by starting a new recovery. During the Asian session, EURUSD returned above the 1.06000 level. Now we are trying to keep the momentum up there so that we can start further recovery.
A potential next target is the 1.06500 level, with additional resistance in the EMA 50 moving average. We need a negative consolidation and another pullback below the 1.06000 level for a bearish option. After that, we could expect to see a further pullback and a retest of yesterday’s low. The important news today is the ECB’s future interest rate report.
GBPUSD chart analysis
During the Asian trading session, GBPUSD hovered around 1.20800 levels. The pair tried to break above the 1.21000 level but quickly returned to its initial position. We are now slightly biased towards the 1.20500 level and could soon test support at the 1.20500 level.
A breakthrough of the pound below that support would lower it to the 1.20000 level, and thus we would form a new lower low. We need a positive consolidation and a jump to the 1.21000 level for a bullish option. Then it is necessary to stay above and start the pound’s recovery with the next impulse. Potential higher targets are 1.21500 and 1.22000 levels.
