EURUSD and GBPUSD: The Euro Initiated A Pullback to 1.03500
- During the Asian trading session, the euro initiated a pullback.
- Last week’s pound growth was stopped on Friday at the 1.18500 level.
EURUSD chart analysis
During the Asian trading session, the euro initiated a pullback. The pair climbed to the 1.03500 level on Friday, forming a new four-month high. The last time we were at that level was on August 11. Based on today’s picture, we could see a continuation of the withdrawal of the euro.
For a bearish option, we need a continuation of today’s negative consolidation, which would lead to a further decline in EURUSD. We are looking for the first support at the 1.02500 level, and a move below would put additional pressure on the euro. Potential lower targets are 1.02000 and 1.01000 levels. For a bullish option, we need a new positive consolidation and a return to the previous high at the 1.03700 level. A break above and a stay above could help the euro reach the 1.04000 level. A potential higher target is the 1.05000 level.
GBPUSD chart analysis
Last week’s pound growth was stopped on Friday at the 1.18500 level. During the Asian trading session, the pound retreats below the 1.18000 level. We are looking for today’s support at the 1.17500 level, and for now, the pound is managing to stay above despite a lot of pressure that could make a break below.
For a bearish option, we need a negative consolidation and a break below the 1.17500 level. Then we need to stay down there to continue the bearish trend. Potential lower targets are 1.17000 and 1.16000 levels. For a bullish option, we need a positive consolidation and a return above the 1.18500 level. After that, we would have a good chance to continue the pound recovery with a new bullish impulse. Potential higher targets are 1.19000 and 1.20000 levels.