EURUSD and GBPUSD: The Euro is consolidating above 1.06000

• During the Asian trading session, EURUSD consolidated above the 1.06000 level.
• Yesterday, GBPUSD failed to make a concrete move above the 1.20600 level.

EURUSD chart analysis

During the Asian trading session, EURUSD consolidated above the 1.06000 level. Bullish consolidation has continued since January 3, and we are slowly advancing toward the 1.06500 level. The market is still too calm at the beginning of this year. For a bullish option, we need a positive consolidation above the 1.06500 level. Above, we could see the EURUSD rise to the 1.07000 resistance level.

A break above would help us significantly by forming a new higher high. Potential higher targets are 1.07500 and 1.08000 levels. We need a negative consolidation and price pullback below the 1.06000 level for a bearish option. Then we would again find ourselves in the important support zone at 1.05750.

A break below would send us to a retest of the previous low, and we might see a continuation of the bearish scenario. Potential lower targets are 1.055000 and 1.05000 levels.

GBPUSD chart analysis

Yesterday, GBPUSD failed to make a concrete move above the 1.20600 level. So during the Asian trading session, we saw the pound weakening and falling to the 1.20000 level. The pound managed to get back to the 1.20500 level again, but too much bearish pressure turned the pound towards the 1.20000 level again.

We need a break below this morning’s low for a further bearish trend. With that, we would have the opportunity to go down to this week’s minimum at the 1.19000 level. Further pressure on the pound would see GBPUSD at even lower support levels. We need a positive consolidation and a return above the 1.20600 level for a bullish option.

Then we need to hold on there and move up to the 1.21000 level with the next bullish impulse. If we broke above this level, we would have a chance to continue the recovery to higher targets on the chart.