EURUSD and GBPUSD are at new multi-month levels

• During the Asian trading session, EURUSD managed to form a six-month high at the 1.05850 level.
• The new December high is at the 1.23500 level. 

EURUSD chart analysis

During the Asian trading session, EURUSD managed to form a six-month high at the 1.05850 level. After that, we see a slowdown of the bullish impulse, and the euro makes a pullback to the 1.05100 level. We need to hold above the 1.05000 level in order to start a new bullish impulse. Then we must go back to this morning’s high and try to break above. With a new bullish consolidation, we could see a further euro recovery. Potential higher targets are 1.06000 and 1.06500 levels.

For a bearish option, we need a negative consolidation and a fall of the euro below the 1.05000 level. Then we would look at the 1.04500 level because we had previous support there. A further breakout below could lead to a deeper pullback. Potential lower targets are 1.04000 and 1.03500 levels.

GBPUSD chart analysis

The new December high is at the 1.23500 level. During the Asian trading session, the pound climbed to a new multi-month high, and in the European session, it retreated to the 1.22300 level. For now, we have managed to hold above the 1.22000 level. A break below could see the pound continue to fall. The next important level is at 1.21000; if we see a break below, the pound could retest the 1.20000 psychological level. A break below would increase bearish pressure, which would lead to a further pullback in the pound.

Potential lower targets are 1.19000 and 1.18000 levels. For a bullish option, we need positive consolidation and a return to this morning’s high. The pound’s breakout above could continue to the 1.24000 level. This would form a new higher high and extend the bullish scenario. A potential higher target is the next 1.25000 psychological level.