EURUSD and GBPUSD: The Euro is under pressure at 1.05600

• In the previous four days, we saw a bullish trend of EURUSD up to 1.06399 levels.3
• This week’s GBPUSD bullish rally was stopped yesterday at the 1.23376 level.

EURUSD Chart Analysis

In the previous four days, we saw a bullish trend of EURUSD up to 1.06399 levels. We stopped there, and the pair started to pull back after positive economic news for the USD, dropping to the 1.05260 level. During the Asian trading session, we saw a bullish consolidation up to the 1.05600 level, and we have resistance there for now. We need a break above to start a further recovery. Potential higher targets are 1.05800 and 1.06000 levels.

We need a negative consolidation and pullback below yesterday’s support at the 1.05260 level for a bearish option. Thus, we would form a new low for this week, which would strengthen the bearish option. Potential lower targets are 1.05000 and 1.04800 levels.

GBPUSD Chart Analysis

This week’s GBPUSD bullish rally was stopped yesterday at the 1.23376 level. After that, we see a pullback and a strong bearish impulse that takes us down to the 1.21740 level. During the Asian trading session, the pound recovered and increased to 1.22200. There, we encounter the EMA50 moving average and the resistance in that zone. The pair pulls back to the 1.22000 level, looking for that support.

We need a positive consolidation and a jump to the 1.22400 level for a bullish option. So, we would skip the EMA50 and get its support. Potential higher targets are 1.22600 and 1.22800 levels. We need a negative consolidation and a drop below this morning’s support for a bearish option at the 1.21740 level. A break below would mean the formation of a new low and confirmation of a bearish option. Potential lower targets are 1.21600 and 1.21400 levels.