EURUSD and GBPUSD: GBPUSD pulls back to 1.23800 level

 

• This week began with the EURUSD at 1.06847 levels.
• The GBPUSD pair experienced a positive start to the week, witnessing an upward surge to the 1.25058 level.

 

Analysis of the EURUSD Chart

This week began with the EURUSD at 1.06847 levels. On Tuesday, a robust bullish momentum propelled the pair to 1.08800 levels. Following this surge, the pair entered a phase of lateral consolidation, fluctuating within the 1.08300-1.09000 range. An attempt was made yesterday to breach the 1.09000 level, but the ascent was halted at 1.08956, encountering resistance. Consequently, a pullback commenced, persisting in today’s chart.

In the Asian trading session, the pair slightly surpassed the 1.08500 level. However, during the EU session, a breakout occurred below, causing the EURUSD to descend to the 1.08360 level. We are on the verge of surpassing the previous low at the 1.08300 level. A breakthrough below this point would establish a new low, affirming the prevailing bearish trend on the chart. Potential lower targets include the 1.08200 and 1.08000 levels.

Analysis of the GBPUSD Chart

The GBPUSD pair experienced a positive start to the week, witnessing an upward surge to the 1.25058 level. However, resistance was encountered in this zone, leading to a subsequent pullback that brought the pair down to the 1.23800 level yesterday. Finding support at this level initiated a recovery, reaching the 1.24600 level, where a lower high was formed. Subsequently, the pair entered a bearish consolidation phase, returning to the previous support level.

In the recent Asian session, the pair remained around the 1.24150 level. As the EU session commenced, the pound underwent a notable weakening. Anticipating a breach below the support level, we expect the formation of a new low for GBPUSD, confirming the current bearish momentum on the chart. Potential lower targets include the 1.23600 and 1.23400 levels, with additional support potentially found in the EMA50 moving average zone around 1.23400 levels.