EURUSD and GBPUSD: EURUSD slips below 1.09000 level

EURUSD chart analysis

Since the beginning of the week, EURUSD has been in a bearish trend, forming a new low at the 1.08566 level on Thursday. During the Asian session, the pair started a positive consolidation, and the recovery attempt was stopped at the 1.08950 level. From that level, the EURUSD pulled back to the 1.08660 level and gained new support. Now, we need a bullish impulse that would move us to the 1.09000 level.

A break above would mean that the euro has the strength to attempt a further continuation to the bullish side. Potential higher targets are 1.09200 and 1.09400 levels. We need a negative consolidation and pullback to the previous support at the 1.08660 level for a bearish option. A break below this support would lead to the formation of a new low and thus confirm the bearish option. Potential lower targets are 1.08400 and 1.08200 levels.

GBPUSD chart analysis

Since Monday, GBPUSD has been in a solid bullish trend with 1.26166 levels. Yesterday, the pound climbed up to 1.27890 levels and formed a new weekly high there. There, we encounter resistance, and the pair begins to retreat. During the Asian trading session, we hovered around the 1.27500 level, only to see a breakout below at the beginning of the EU session.

Today’s low was formed at the 1.27050 level, and we have managed to stay above it for now. We need a positive consolidation and a return to the previous resistance zone around the 1.27500 level for a bullish option. A move above would mean that the pound has the strength for further recovery. Potential higher targets are 1.27750 and 1.28000 levels.

We need a negative and pullback to the 1.27000 level for a bearish option. If we fail to hold above, the pair will continue to slide, and we could see the formation of a new low. Potential lower targets are 1.26500 and 1.26000 levels.

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