EURUSD and GBPUSD: Pound falls to new annual low at 1,23887

• During the Asian trading session, EURUSD dropped to 1.06100 levels. 
• A new low for GBPUSD was formed this morning at the 1.23887 level. 

EURUSD chart analysis

During the Asian trading session, EURUSD dropped to 1.06100 levels. We were close to testing the weekly low at the 1.06000 level. With the new support, the pair starts a bullish consolidation and rises to the 1.06500 level. Here, we encounter the EMA50 moving average, and so far, we have failed to move above it. We need a stronger bullish impulse for that move. If we succeed, we will have the opportunity to continue further recovery.

Potential higher targets are 1.06600 and 1.06700 levels. If we continue to be under pressure below the EMA50, the EURUSD will have to move to the bearish side again. A drop to 1.06300 would start a pullback. A new impulse on the bearish side would only increase the pressure, and we would fall back into the previous support zone. Potential lower targets are 1.06200 and 1.06100 levels.

GBPUSD chart analysis

A new low for GBPUSD was formed this morning at the 1.23887 level. With that, we fell to a five-month low, the previous November pound value. We managed to get new support and get back above the 1.24000 level. After that, a bullish consolidation was initiated, and the GBPUSD rose to 1.24400 levels. This is where we encounter resistance at the EMA50 moving average, which is currently putting pressure on the pound, preventing it from moving above.

Potential higher targets are 1.24500 and 1.24600 levels. We are testing the weekly open price at 1.24500, and a break above it would return us to the positive side. We need a negative consolidation and pullback to the previous support at the 1.24100 level for a bearish option. This increases the pressure on that zone, which could have a negative impact on the further movement of the pound. Potential lower targets are 1.24000 and 1.23900 levels.