EURUSD and GBPUSD: Pound falls to six-month low at 1,22250
- During the Asian trading session, EURUSD was calm and moved in the 1.06450-1.06500 range.
- During the Asian trading session, GBPUSD managed to hold above the 1.22350 level.
EURUSD chart analysis
During the Asian trading session, EURUSD was calm and moved in the 1.06450-1.06500 range. At the beginning of the EU session, there was instability in the euro, and we made a breakthrough below the support zone, going down to the 1.06300 level. There, we formed a new low for now. The pair still continues to move in last week’s 1.06150-1.06700 range.
Based on this morning’s movement, we could expect to see a continuation of the pullback in testing the 1.06150-1.06200 support zone. A break below would form a new low and thus confirm the bearish scenario. Potential lower targets are 1.06100 and 1.06000 levels.
We need a positive consolidation and a return to the 1.06500 resistance level for a bullish option. Then, we need to keep up there so that we have the opportunity to start further recovery with a new impulse. Potential higher targets are 1.06600 and 1.06700 levels.
GBPUSD chart analysis
During the Asian trading session, GBPUSD managed to hold above the 1.22350 level. With the beginning of the EU session, the pound began to weaken and break below the Asian support level. The pair slipped to the 1.22240 level, and it is possible that today, we will see a continuation of the pullback and the formation of a new lower low. Potential lower targets are 1.22200 and 1.22100 levels. Futan is currently at a six-month low.
For a bullish option, we need a positive consolidation and a return above the 1.22350 level, the Asian support. After that, we could return to the previous movement zone, where we would have a better opportunity to initiate further recovery. We then look at the 1.22500 level as the next major obstacle to the bullish option. Potential higher targets are 1.22600 and 1.22700 levels.