EURUSD and GBPUSD: EURUSD is back above 1.08800 level

• During the Asian trading session, EURUSD managed to hold above the 1.08700 level.
• During the Asian trading session, GBPUSD retreated from 1.27500 levels.

EURUSD chart analysis

During the Asian trading session, EURUSD managed to hold above the 1.08700 level. At the beginning of the EU session, the euro strengthened and pushed the pair up to the 1.08890 level. We are now looking to see if we will see a break above the 1.09000 level and continue the recovery further. Potential higher targets are 1.09200 and 1.09400 levels. The EMA50 moving average zone around the 1.09200 level could be additional resistance to the bullish option.

We need a negative consolidation and pullback to 1.08600 levels for a bearish option. A break below would indicate a continuation to the bullish side and a visit to the zone of the previous low below the 1.08500 level. Potential lower targets are 1.08450 and 1.08400 levels.

GBPUSD chart analysis

During the Asian trading session, GBPUSD retreated from 1.27500 levels. The pair had minor support at the 1.27250 level, but now we see a breakout below and a continuation of the pullback with a target at the 1.27000 support level. On Friday, the pound managed to get support at 1.27000, and if the pressure at that level persists, a break below could easily happen. Potential lower targets are 1.26750 and 1.26500 levels.

We need a new positive consolidation and a break above the 1.27500 level for a bullish option. Then, it would be desirable to hold above it in order to form a new bottom there. With the next impulse, the pound could start a further recovery. Potential higher targets are 1.27750 and 1.28000 levels.