EURUSD and GBPUSD: EURUSD returns to the 1.07850 zone

EURUSD chart analysis

EURUSD: A snapshot of the current market-on Thursday, the pair retreated to the 1.07240 support level, forming a weekly low there. We see a new support and a return above the EMA200 moving average at that level. A strong bullish impulse takes us up to the 1.07650 level, thus initiating a bullish consolidation. In the Asian trading session this morning, we continue up to the 1.07840 level and are on the verge of testing this week’s high at 1.07900.

EURUSD: potential scenarios and targets-If we see a negative consolidation and a pullback down to the 1.07600 level, it could open up a bearish option. In this case, we would test the weekly open price, and by falling below it, we would move into negative territory. Potential lower targets are 1.07500 and 1.07400 levels. Additional support in the 1.07400 zone is in the EMA200 moving average.

GBPUSD chart analysis

Yesterday, we saw GBPUSD pull back to a new weekly low at 1.24457. We are quickly gaining support below and moving back above the 1.25000 level. There, we encounter the EMA50 moving average, cross above it and get rid of the bearish pressure. The pair continues its bullish consolidation, rising above 1.25250 and the EMA200 moving average. During the Asian trading session, we were able to consolidate above that support and start a further recovery.

The new impulse pushes us to 1.25400, and there, we form a new daily high. Potential higher targets are 1.25500 and 1.25600 levels. We need a negative consolidation and pullback below the EMA200 and 1.25250 levels for a bearish option. This puts us back on the clean side, and we will be under pressure to continue the retreat. Potential lower targets are 1.25000 and 1.24900 levels.

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