EURUSD and GBPUSD: EURUSD under pressure below 1.08400

• Last week, EURUSD retreated on Tuesday to 1.07245 levels. 
• Last week was very volatile for GBPUSD. 

EURUSD chart analysis

Last week, EURUSD retreated on Tuesday to 1.07245 levels. After we received new support, the pair began a recovery that took us to a new weekly high at 1.08766 level on Thursday. There, we encounter a corral and start a pullback to the EMA200 moving average. We fall below it to the weekly open price at 1.07900 and stop there. We have successfully tested that level, and with two quick impulses, we are returning to the 1.08400 level.

During the Asian trading session, EURUSD moved in the 1.08200-1.08400 range. We are currently still in that range with support at the lower level in the EMA50 moving average. We hope for an impulse above 1.08400 in order to initiate further growth and recovery of the euro. Potential higher targets are 1.08500 and 1.08600 levels.

GBPUSD chart analysis

Last week was very volatile for GBPUSD. First, we had a pullback on Monday to 1.25396, then a bullish consolidation and recovery on Thursday to 1.26835 levels. After forming a new weekly high and resistance at that level, a new pullback was initiated and a drop below 1.26200 and the EMA200 moving average. We fell to the 1.25740 level on Friday with a strong bearish impulse.

There, we form a higher low compared to Monday and return quickly up to the 1.26400 resistance level. During this morning’s Asian session, GBPUSD moved in the 1.26200-1.26400 range. At the start of the EU session, the pressure is on the lower level of this rank. Additional pressure is created by the EMA200 which is in the middle and is neutral for now. We will have to move above the 1.26400 level with a new impulse if we are thinking about further recovery to the bullish side. Potential higher targets are 1.26500 and 1.26600 levels.