EURUSD and GBPUSD: The Euro is consolidating around 1.09000

• During the Asian trading session, EURUSD slowed its growth and stopped at the 1.09265 level.
• During the Asian session, GBPUSD retreated from 1.24233 levels. 

EURUSD chart analysis

During the Asian trading session, EURUSD slowed its growth and stopped at the 1.09265 level. After that, we see a pullback of the euro and a drop below the 1.09000 level. Today’s picture is good for the dollar, and we could see a further pullback of EURUSD to lower support. Potential lower targets are 1.08750 and 1.08500 levels.

If the euro consolidates and maintains this level, we could see a new bullish trend and continued growth of EURUSD. Potential higher targets are 1.09250 and 1.09500 levels. Today’s data on inflation in the EU zone showed a slowdown, which would mean that the ECB could reduce the pressure to increase interest rates.

GBPUSD chart analysis

During the Asian session, GBPUSD retreated from 1.24233 levels. The decline was stopped at the 1.23600 level, and we now have support at that level. If we manage to hold here, we could see further growth in the pound and a move above the 1.24000 level. For a bearish option, we need a continuation of this negative consolidation and a further decline to the 1.23400 support level.

A break below would put further pressure on the pound. Potential lower targets are 1.23200 and 1.23000 levels. This morning we had news on the British Gross Domestic Product. The data showed that there was an increase of 0.6% compared to the same period a year ago.