EURUSD and GBPUSD: The euro stable at the end of the week
- EURUSD is holding above the 1.03000 level.
- In the first part of yesterday, the pound was in a strong bearish trend, and that decline stopped at the 1.17500 level.
EURUSD chart analysis
EURUSD is holding above the 1.03000 level. Yesterday, the EURUSD pair was in a bearish trend up to the 1.03000 level, after which we saw a bullish impulse and the formation of a new low from which the euro began a new recovery. During the Asian trading session, the euro approached 1.04000, but we do not see a break above for now.
To continue the bullish option, we need to break above and try to hold up there. Then we need a positive consolidation that would move us to the next resistance at the 1.04500 level. Potential higher targets are 1.05000 and 1.05500 levels. For a bearish option, we need a passive consolidation and pullback to the 1.03000 support level. A breakout of the euro below would increase negative pressure leading to a continuation of the EURUSD pullback. And potential lower targets are 1.025000 and 1.02000 levels.
GBPUSD chart analysis
In the first part of yesterday, the pound was in a strong bearish trend, and that decline stopped at the 1.17500 level. Since then, the pound has been bullish and continues today. Today’s high is at 1.19500 level, while we are now at 1.19150, and we see a minor pullback. The pound is entering a potential resistance zone, which could lead to a further drop in the value of the pound. For a bearish option, we need a negative consolidation and a return to yesterday’s support level of 1.17500.
A price break below would signify a potential continuation of the fall of the British currency against the dollar. Potential lower targets are 1.17000 and 1.16000 levels. For a bullish option, we need a positive consolidation and a move toward the 1.20000 level of resistance. A break above and staying there would be of great benefit to us for further continuation of the bullish trend. Potential higher targets are 1.20500 and 1.21000 levels.