EURUSD and GBPUSD: EURUSD falls below the 1.10000 level

• At the beginning of this year, EURUSD started a bearish trend, retreating below the EMA50 and 1.10000 levels.
• GBPUSD made a big pullback from 1.27600 to 1.26100 level yesterday.

EURUSD chart analysis

At the beginning of this year, EURUSD started a bearish trend, retreating below the EMA50 and 1.10000 levels. That negative consolidation brought this pair down to the 1.09383 level. During the previous Asian trading session, the euro got the desired support and moved up to the 1.09600 level. For now, we are encountering resistance in that zone, and EURUSD is moving in the 1.09500-1.09600 range. We need a breakthrough above if we want to start a new recovery.

We would have to reach 1.09800 levels. We are approaching the EMA50 moving average and hope for a break above for further continuation to the bullish side. Potential higher targets are 1.10000 and 1.10200 levels. We need a negative consolidation and a drop below the 1.09400 level for a bearish option. With that, we would be on the way to form a new low and confirm the bearish option. Potential lower targets are 1.09200 and 1.09000 levels.

GBPUSD chart analysis

GBPUSD made a big pullback from 1.27600 to 1.26100 level yesterday. After gaining support in that zone, the pair recovered during the previous Asian trading session. We have moved up to the 1.26500 level and there we encounter a new resistance that does not allow us to start a further recovery for now. This leads to a pullback and we are now at the 1.26320 level. We are turning back to the previous support level.

A drop below leads to the formation of a new low for this year and confirms the bearish pressure. Potential lower targets are 1.25800 and 1.25600 levels. For a bullish option, we need a break above the 1.26600 level. Then, we should hold up there and wait for the next impulse to initiate a bullish consolidation. Potential higher targets are 1.26800 and 1.27000 levels.