EURUSD and GBPUSD: Euro in bullish consolidation to 1.05400

• On Friday, EURUSD fell to the 1.0500 level, thus forming a seven-day low.
• During the Asian trading session, we saw a recovery of GBPUSD from 1.21200 to 1.21800 level.

EURUSD chart analysis

On Friday, EURUSD fell to the 1.0500 level, thus forming a seven-day low. During this morning’s Asian session, we saw a bullish consolidation and recovery of the euro to the 1.05350 level. If we managed to maintain ourselves at the current level, we would have a good starting position for further recovery on the bullish side. The next targets are the 1.05400 and 1.05600 levels. In the zone around the 1.05600 level, we come across the EMA50, which could make it difficult for us to continue on the bullish side.

For a bearish option, we need a negative consolidation and a new EURUSD pullback to support at the 1.05000 level. A break below would be a clear sign that the euro does not have the strength to recover and that we will form a new lower low. Potential lower targets are 1.04800 and 1.04600 levels.

GBPUSD chart analysis

During the Asian trading session, we saw a recovery of GBPUSD from 1.21200 to 1.21800 level. In the EU session, we encounter resistance at that level and see a pullback to the 1.21600 level. The resistance zone for us coincides with last week’s support level, which would have the effect of starting a further retreat. Potential lower targets are the previous low at 1.21200 and 1.21000 levels.

We need a positive consolidation and a jump above the resistance at the 1.21800 level for a bullish option. Then we need to hold up there in order to start from there the continuation of GBPUSD to the bullish side. Potential higher targets are 1.22000 and 1.22200 levels. Additional resistance in the zone around 1.22000 is the EMA50 moving average, which could affect and halt the pound’s recovery.