EURUSD Technical Analysis: Retreating to 1.08348 Levels

• EURUSD retreated to 1.08348 levels yesterday. 
• During the Asian trading session, GBPUSD formed in the 1.27100-1.27300 range. 

EURUSD chart analysis

EURUSD retreated to 1.08348 levels yesterday. After that, we saw a bullish consolidation until the end of the day and a rise to the 1.08700 level. During the Asian trading session, the pair managed to maintain itself in the 1.08600-1.08700 range, but with the start of the EU session, the euro weakened. The pair started to pull back and fell to the 1.08400 support level. We can say that we are testing yesterday’s low in the hope of holding above it.

Staying down too long could push EURUSD to a new low. Potential lower targets are 1.08300 and 1.08250 levels. If we find strength and start a positive consolidation, the pair will have a chance to recover. Moving above 1.08500 would make the first step to the bullish side. Then, we need to continue to 1.08700 to erase this morning’s losses. Potential higher targets are 1.08750 and 1.08800 levels.

GBPUSD chart analysis

During the Asian trading session, GBPUSD formed in the 1.27100-1.27300 range. At the start of the EU session, the pair began to retreat, and the reason was the news about the drop in inflation in the UK. This led to a drop to the daily low of 1.26869 level. For now, we have support at that level and are moving up to the 1.26980 level. A return above 1.27000 increases the chances of further growth to the bullish side. Potential higher targets are 1.27100 and 1.27200 levels.

For a bearish option, the pound should first fall to a new daily low, which confirms the bearish momentum. The next test is yesterday’s low at the 1.26678 level. By going down, we confirm that GBPUSD is in a bearish consolidation and that we will see a further pullback. Potential lower targets are the 1.26600 and 1.26500 levels.