EURUSD and GBPUSD: today, we see a pullback in both pairs
- During the Asian trading session, the pair EURUSD moved above the support at the 1.05000 level.
- During the Asian trading session, the pound remained below the 1.22000 level.
EURUSD chart analysis
During the Asian trading session, the pair EURUSD moved above the support at the 1.05000 level. The pair failed to break above the 1.06000 level yesterday, after which we see a pullback on the chart. If we stay here longer, there could be increased pressure which would lead to a further decline in EURUSD. For such a scenario, we need a break below the 1.05000 support level.
After that, we need to stay below and, with the new negative consolidation, continue the retreat to lower levels. Potential lower targets are 1.04500 and 1.04000 levels. For the bullish sentiment, we need positive consolidation and a return to yesterday’s low. Above, we would be close to trying to climb above the 1.06000 level. A break above would form a new higher high, which could mean that the bullish scenario continues. Potential higher targets are 1.06500 and 1.07000 levels.
GBPUSD chart analysis
During the Asian trading session, the pound remained below the 1.22000 level. Now we have stronger pressure on the pound, which could further lower this pair. We are looking for the first potential support at the 1.21000 level. A break below could further shake the pound, which would continue the fall of the British currency against the US dollar. The next important target is 1.20000.
Potential lower targets if the pound falls below the 1.19000 and 1.18000 levels. For a bullish option, we need a new positive consolidation and a return above the 1.23000 level. After that, we need to hold above and try to move to the 1.24000 level. If there is a break above the pound, it could continue the previous two-month bullish trend. A potential higher target is the 1.25000 level.