EURUSD and GBPUSD: The euro continues the bullish trend

• At the beginning of this week, EURUSD retests the November resistance zone. 
• During the Asian session, the pound was on the negative side, facing the 1.20000 level.

EURUSD chart analysis

At the beginning of this week, EURUSD retests the November resistance zone. The previous bullish impulse was so strong that it could make a breakout above this resistance zone and climb up to the 1.05000 level. After that, we must stay there and continue the recovery with a new bullish consolidation. Potential higher targets are 1.05500 and 1.06000 levels.

For the bearish option, we need a new negative consolidation and pullback to this morning’s support at the 1.03500 level. If such a scenario were to happen, we could then see a breakout below and a further continuation of the EURUSD decline. Potential lower targets are 1.03000 and 1.02500 levels. We would have additional support at the 1.02500 level in the lower trend line.

GBPUSD chart analysis

During the Asian session, the pound was on the negative side, facing the 1.20000 level. On the contrary, a strong bullish impulse followed at the beginning of the European session, and GBPUSD found itself at the 1.21000 level again. Now we have another attempt to break above and form a new higher high. Last week’s high was at the 1.21500 level.

A potential higher target is the 1.22000 level; the last time we were there was four months ago. For a bearish option, we need a negative consolidation and pullback of GBPUSD to the previous support zone at the 1.20000 level. A break below and a hold below could see the pound continue to pull back. Potential lower targets are 1.19000 and 1.18000 levels.