EURUSD and GBPUSD: The Euro Stopped Near The 1.05000

• During the Asian trading session, the euro was maintained around the 1.04000 level.
• The pound makes a pullback and moves away from the 1.20000 level.

EURUSD chart analysis

During the Asian trading session, the euro was maintained around the 1.04000 level. Below we see a negative consolidation that makes a break below, and the euro fell below the 1.03500 level. We are now looking towards the 1.03000 level for the next potential support. For the bearish option, we need a negative consolidation and a further withdrawal of the euro below the 1.03000 level. Potential lower targets are 1.02500 and 1.02000 levels. Additional support at the 1.02000 level is in our trend line.

For a bullish option, we need a new positive consolidation and a return above the 1.04000 level, this morning’s resistance zone. Then we need to hold above and try to climb to this week’s high at 1.04800 level. A break above would form a new higher high, and thus we would get a new bullish signal. Potential higher targets are 1.05000 and 1.05500 levels.

GBPUSD chart analysis

The pound makes a pullback and moves away from the 1.20000 level. During the Asian trading session, we see a slowdown in growth and a minor pullback. The pound retreated below the 1.19000 level and is now already at the 1.18500 level. Such a picture could lead us to see a further retreat of the pound, and the first subsequent support is at the 1.18000 level. For a bearish option, we need a continuation of this negative consolidation. We would then see a possible further decline to the 1.18000 level.

A breakout of the pound below would lead to a further pullback. Potential lower targets are 1.17000 and 1.16000 levels. For a bullish option, we need a positive consolidation and a return above the 1.19000 level. After that, the GBPUSD pair would have a better chance to move up to the 1.20000 resistance level with a new bullish impulse. A potential higher target is the 1.21000 level.