EURUSD and GBPUSD: GBPUSD continues at the 1.25500 level
- During the Asian trading session EURUSD was in a bullish consolidation up to 1.07338 levels.
- During the Asian trading session, GBPUSD continued the bullish consolidation from the previous week.
EURUSD chart analysis
During the Asian trading session EURUSD was in a bullish consolidation up to 1.07338 levels. We pause there for now and pull back to the 1.07100 level, testing the EMA50 moving average support. In the EU session, we will soon have news about German inflation, during which time market volatility will increase. Data can be both positive and negative for the euro.
The current picture further supports the euro, and we expect to see a recovery on the bullish side. We need a move above 1.07400 in order to climb to a new daily high and thereby strengthen the bullish option. Potential higher targets are 1.07500 and 1.07600 levels. For a bearish option, we need a pullback below the 1.07000 level. With that, we fall below the EMA200, which puts additional pressure on the euro. Potential lower targets are 1.06800 and 1.06600 levels.
GBPUSD chart analysis
During the Asian trading session, GBPUSD continued the bullish consolidation from the previous week. The pair was briefly volatile on Friday, and we saw a drop to 1.24600. We stopped there and received support from the EMA200 moving average, after which we initiated a bullish consolidation. This morning, the pair climbed to the 1.25484 level and thereby jumped over last week’s resistance zone around 1.25250.
We expect to see a continuation on the bullish side, and potential higher targets are 1.25600 and 1.25800 levels. We need a negative consolidation and a drop to 1.25000 for a bearish option. We went down there to test the weekly open price. A new bearish impulse would bring us down to a new daily low, thereby indicating a possible further pullback. Potential lower targets are 1.24600 and 1.24400 levels.
