EURUSD and GBPUSD: Formation of a New Higher Low 

• Pair EURUSD yesterday once again confirmed support at the 0.99000 level.
• During the Asian trading session, the pound continued its recovery from yesterday.
• Buoyed by household and government spending, the German economy grew in the second quarter.

EURUSD chart analysis

Pair EURUSD yesterday once again confirmed support at the 0.99000 level, after which we saw a strong bullish impulse up to the 1.00000 level. A short pullback to the 0.99500 level followed, and there we saw the formation of a new higher low on the chart. During the Asian trading session, the euro started a new recovery and climbed to the 1.00330 level. Now we are back at the 1.00000 level and are watching whether the euro will find new support. For a bullish option, we need to maintain above 1.00000 and try to move further towards the upper levels with the continuation of positive consolidation. Potential higher targets are 1.00500 and 1.01000 levels. Additional resistance for us can be MA200 in the zone around 1.00800 levels. For a bearish option, we need a negative consolidation and a pullback of the euro below the current support level. The MA20 and MA50 moving averages provide additional support. A break below the euro would increase the bearish flow. Potential lower targets are 0.99500 and 0.99000 levels.

GBPUSD chart analysis

During the Asian trading session, the pound continued its recovery from yesterday. Today’s high was at the 1.18600 level, and now we have a minor pullback to the 1.18200 level. The MA20 and MA50 moving averages are providing support for us, and based on that, we could expect the pound to continue its recovery. The potential next higher target is the 1.19000 level. Additional resistance just above that level is in the MA200 moving average. We need a negative consolidation and a drop to the 1.18000 level for a bearish option. Continued pressure in that spot could push the pound lower. After that, we would fall below the moving averages, which could cause the pound to fall further. Potential lower targets are 1.17500 and 1.17000 levels.

Market overview

Buoyed by household and government spending, the German economy grew in the second quarter. Data released Thursday by Destatis showed. Gross domestic product increased by 0.1%. Despite the difficult conditions in the global economy, the German economy managed to maintain its position in the first two quarters of 2022, said the president of the Federal Statistical Office, Georg Thiel. Total shipments of goods and services rose 0.3% despite disruptions to supply chains around the world and a drop in exports to Russia.