EURUSD and GBPUSD: The euro is starting a new recovery

• Pair EURUSD yesterday fell to the 1.03000 level, where it found support and started a new bullish impulse.
• During the Asian trading session, GBPUSD continues to recover after yesterday’s drop to the 1.19000 level.

EURUSD chart analysis

Pair EURUSD yesterday fell to the 1.03000 level, where it found support and started a new bullish impulse. During the Asian trading session, the euro continued its recovery and moved above the 1.04000 level. In the European session, the bullish recovery continued, and the EURUSD pair rose to 1.04500 levels. For a bullish option, we need a continuation of positive consolidation and a move above the 1.04500 level. Then we need to hold on there so that we can continue the further recovery of the euro with the next bullish option.

Potential higher targets are 1.05000 and 1.05500 levels. For a bearish option, we need a negative consolidation and pullback below the 1.04000 level. A break below could take us down to the previous support zone at the 1.03000 level. If we do not manage to maintain our position there, we will see a further decline in the European currency. Potential lower targets are 1.02500 and 1.02000 levels.

GBPUSD chart analysis

During the Asian trading session, GBPUSD continues to recover after yesterday’s drop to the 1.19000 level. The pound climbs above the 1.20000 level and continues to the 1.21000 level. The bullish impulse continued further and climbed to the 1.21500 level. We could see further growth in the pound as long as this bullish momentum lasts. For a bullish option, we need a positive consolidation and try to hold above the 1.21000 level. Potential higher targets are 1.22000 and 1.22500 levels.

For a bearish option, we need a negative consolidation and pullback below the 1.21000 level. We could see a pullback to the 1.20000 level and a breakout of the pound below. In the following, it would be necessary to form a new lower low below 1.19000. That would confirm that we will see a continuation of the pound’s withdrawal. Potential lower targets are 1.18500 and 1.18000 levels.