EURUSD and GBPUSD: EURUSD remains stable above 1.08200

EURUSD chart analysis

During this morning’s Asian trading session, EURUSD is in a slight retreat. At the opening of the market, we had a bearish gap from 1.08384 to 1.08000 levels. The pair found support at that level and climbed back to 1.08300. We still have support from the EMA50 moving average. As long as we are above its line, we will remain on the bullish side. Potential higher levels are 1.08400 and 1.08500.

For a bearish option, we need a negative consolidation, a drop below the EMA50 moving average, and the 1.08100 level. Going down below, we will test the 1.08000 level, which is this morning’s low. A breakthrough to a new low confirms that the euro does not have the strength to recover. After that, we expect to see a pullback and drop to a new lower low. Potential lower targets are the 1.07900 and 1.07800 levels.

GBPUSD chart analysis

During this morning’s Asian trading session, GBPUSD climbed to a new July high at 1.21891. Up there, the pair paused and took a step back to the 1.28000 level. For now, we are successfully holding above, which could trigger a new positive consolidation and push the pound to a new weekly high. Potential higher targets are the 1.28300 and 1.28400 levels.

For a bearish option, we need a negative consolidation and a drop below this morning’s low at the 1.28000 level. Going down, we will form a new weekly low and confirm the bearish pressure. GBPUSD would have to look for new support at the 1.27800 level, where we meet the EMA50 moving average. If the momentum is too strong, the next step is to fall to a new lower low. Potential lower targets are the 1.27700 and 1.27600 levels.

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