EURUSD and GBPUSD: The euro and the pound fall to new lows

• On Friday, EURUSD fell to a new April low at 1.06228 level.
• Strong bearish consolidation on Friday pushed GBPSUD to a new low at the 1.24268 level. 

EURUSD chart analysis

On Friday, EURUSD fell to a new April low at 1.06228 level. After that, the pair recovered slightly to 1.06417 levels by the end of the market closing. During the Asian session, that recovery continued to the 1.06600 level. With the start of the EU session, the euro stopped its growth and retreated to the 1.06500 level. However, we expect to see the continuation of this morning’s bullish consolidation and climb to a new daily high.

Potential higher targets are 1.06700 and 1.06800 levels. Additional resistance in the EMA50 is found in the zone of 1.06870 levels. We need a EURUSD pullback to the 1.06400 support level for a bearish option. By falling below, the pair will form a new daily low and thus increase the pressure on the euro. Potential lower targets are 1.06200 and 1.06000 levels.

GBPUSD chart analysis

Strong bearish consolidation on Friday pushed GBPSUD to a new low at the 1.24268 level. This dropped us to a new annual low for the pound. After receiving support at that level, the pair starts to recover. During the Asian trading session, we returned above the 1.24500 level, and we expect to see a continuation to the bullish side now in the EU session. Today’s high is 1.24800 level; for now, it is an obstacle for us, and we are retreating to 1.26700 level.

It is very possible that we will see growth above this high because GBPUSD is still in bullish consolidation. Potential higher targets are 1.25000 and 1.25200 levels. In the zone around 1.25000, we encounter the EMA50, and there, we expect some fluctuation of this pair. We need a negative consolidation and a drop to the 1.24500 support level for a bearish option. A further drop would only add pressure on the pound to test last week’s low. This could lead to a continuation below to a new multi-month low.