EURUSD and GBPUSD: GBPUSD is hovering around the 1.27000

• During the Asian trading session, EURUSD retreated to support at the 1.09270 level.
• During the Asian trading session, we saw a pullback of GBPUSD  to 1.26670 levels.

EURUSD chart analysis

During the Asian trading session, EURUSD retreated to support at the 1.09270 level. At the beginning of the EU session, the euro strengthened and jumped to the 1.09500 level with a bullish impulse. For now, we have stopped at this level and will try to consolidate around it in order to start further recovery from that point.

Potential higher targets are 1.09600, 1.09700 and 1.09800 levels. The next resistance could be at 1.09800, as this is where we encounter the EMA50 moving average. If we manage to move above it, we will continue on the bullish side.

We need a negative consolidation and pullback to this morning’s support for a bearish option. A breakout of the euro below it would form a new low for this week, which would further strengthen the bearish scenario. Potential lower targets are 1.09100 and 1.09000 levels.

GBPUSD chart analysis

During the Asian trading session, we saw a pullback of GBPUSD  to 1.26670 levels. There, the pair receives support and begins recovery. With positive consolidation, we climbed up to the 1.27000 level. At that level, we encounter resistance, and GBPUSD takes a break before a potential continuation to the bullish side. Potential higher targets are 1.27200 and 1.27400 levels.

We need a negative consolidation and a pullback of the pound below the 1.26700 level for a bearish option. We would again be in a situation to test this morning’s support zone. A break below would lead to the formation of a new low, and thus, we would confirm the bearish scenario. Potential lower targets are 1.26500 and 1.26400 levels.