EURUSD AND GBPUSD: The pound retreated to the 1.26000 level

• The beginning of this week brought us a sideways consolidation of the EURUSD in the 1.07600-1.07800 range.
• This week’s high for GBPUSD was formed yesterday at the 1.26686 level. 

EURUSD chart analysis

The beginning of this week brought us a sideways consolidation of the EURUSD in the 1.07600-1.07800 range. Monday was a holiday in the US, so we had more volatility on Tuesday, which the Euro took advantage of. With the bullish impulse, we broke the 1.07800 previous resistance and climbed to the 1.08390 level. At that level, we form a two-week high and stop there.

After that, a bearish consolidation was launched, bringing us below the 1.08000 level today. We are now in the phase of looking for new support and expect EURUSD to fall to 1.07800 and test support in the EMA200 moving average. A break below would further jeopardize the recovery, and potential lower targets are 1.07600 and 1.07500 levels. By gaining support at the 1.08000 level, the pair could start the previous bullish trend.

GBPUSD chart analysis

This week’s high for GBPUSD was formed yesterday at the 1.26686 level. After that, the pound goes on the defensive and initiates a bearish consolidation from that level. This brings us to support at the 1.26000 level. We have additional support for the bullish option in the EMA200 moving average, and we need a break above 1.26400 in order to get concrete confirmation. Potential higher targets are 1.26500 and 1.26600 levels.

For a bearish option, the pair would have to pull back below 1.26000 and the EMA200 moving average. So, we would move to the bearish side and be under pressure to test the support from the beginning of the week. A new test of the 1.25800 zone and a longer stay in it could break below and form a new weekly low. Potential lower targets are 1.25700 and 1.25600 levels.