EURUSD and GBPUSD: The euro remains below the 1.07000

• During the Asian trading session, EURUSD traded around 1.07000 levels.
• During the Asian trading session, GBPUSD consolidated around the 1.20500 level. 

EURUSD chart analysis

During the Asian trading session, EURUSD traded around 1.07000 levels. Today’s lowest value of the euro was at 1.06750, and for now, we manage to stay above it. If this consolidation is prolonged, a drop below could occur, and we would see a continuation of the bearish trend.

After that, we would find ourselves revisiting last week’s support zone at 1.06100. Depending on the movement of EURUSD at that place, this week’s future trend will also depend. A break below and continued negative consolidation will extend the bearish option. Potential lower targets are 1.06000 and 1.05750 levels.

For a bullish option, we need a move above the 1.07000 level and stay above. Then, with a new positive consolidation, we could see a further euro recovery.

GBPUSD chart analysis

During the Asian trading session, GBPUSD consolidated around the 1.20500 level. So far, we have not been able to break above, and the pound has retreated to the 1.20250 support level. Last week, the pair slipped to the 1.19150 level and thus formed a new low for this month. If by any chance we would drop below the 1.20000 support level, then there would be a chance to retest the previous low and the support zone around 1.19500.

A break below could lead to a continuation of the decline, and the target is the next low from the beginning of January at the 1.18500 level. for a bullish option, we need a positive consolidation and a break above the 1.20500 level. After that, we would have an opportunity to move up to 1.21000 and move to the next higher consolidation there. Potential higher targets are 1.21500 and 1.22000 levels.