EURUSD and GBPUSD: The euro is moving towards 1.08500

• During the Asian trading session, EURUSD dropped to 1.07900 levels.
• During the Asian trading session, GBPUSD dropped to 1.22800 levels. 

EURUSD chart analysis

During the Asian trading session, EURUSD dropped to 1.07900 levels. After that, EURUSD manages to consolidate at that level and start a bullish impulse. We are again back above the 1.08000 level and climbing up to the 1.08420 level. The key for EURUSD is to hold above the EMA20 moving average, supporting recovery.

We need a positive consolidation and a move above the 1.08500 level to continue the bullish option. Potential higher targets are 1.08750 and 1.09000 levels. We need a negative consolidation and pullback below the 1.08200 level for a bearish option. We would then be in a new position to test this morning’s support. Potential lower targets are 1.07750 and 1.07500 levels.

GBPUSD chart analysis

During the Asian trading session, GBPUSD dropped to 1.22800 levels. The pair receives support at that level and starts a bullish impulse up to 1.2330. We currently have resistance at that level and a minor pullback to the 1.23150 level. For a bullish option, I need a continuation of positive consolidation and stabilization above the 1.23300 level.

After that, we could expect GBPUSD to continue growing, and potential higher targets are 1.23600 and 1.24000 levels. For a bearish option, we need a new negative consolidation and a withdrawal of the pound below the 1.22800 level. After that, we could expect the pound to fall to lower support levels. Potential lower targets are 1.22500 and 1.22000 levels.