EURUSD and GBPUSD: The euro is recovering from 1.04880 low

• EURUSD fell to a new nine-month low on Wednesday at the 1.04880 level.
• GBPUSD fell to the 1.21100 level on Wednesday, forming a new six-month low.

EURUSD chart analysis

EURUSD fell to a new nine-month low on Wednesday at the 1.04880 level. The pair manages to stop there, consolidate and initiate a recovery above the 1.05000 level. We are now within reach of the 1.06000 level, and we could test it soon. Additional pressure in that zone is the EMA50 moving average, which could slow further EURUSD recovery. A break above the EMA50 would increase optimism and the euro’s strength to start further growth. Potential higher targets are 1.06200 and 1.06400 levels.

For a bearish option, we need a negative consolidation and a pullback of the euro below the 1.05500 level first. After that, EURUSD would come under more bearish pressure to visit the 1.05000 support level again. A break below would lead to the formation of a new low and confirm the bearish scenario. Potential lower targets are 1.04800 and 1.04600 levels.

GBPUSD chart analysis

GBPUSD fell to the 1.21100 level on Wednesday, forming a new six-month low. After that, we see the pound gaining support at that level and starting to recover. Today’s high is the 1.22500 level, and in this zone, we encounter the EMA50 moving average as a potential additional resistance at that level. A break above would mean that the pound has the strength to continue its recovery. Potential higher targets are 1.22750 and 1.23000 levels.

We need a negative consolidation and pullback to the 1.22000 support level for a bearish option. A breakout of the pound below would likely take us down to previous support at the 1.21100 level. Potential lower targets are 1.21000 and 1.20750 levels.