EURGBP Trading Update: Support at 0.85750 Level This Morning
- EURGBP is falling to a new weekly low this morning at 0.85648.
- EURCHF used this week to recover from the previous decline.
EURGBP chart analysis
EURGBP is falling to a new weekly low this morning at 0.85648. During the Asian trading session, we moved above the EMA200 and the 0.85850 level, after which the pair with a bearish impulse broke below and pushed us to a new low. We are getting support here and moving back slightly to the 0.85750 level. It is very possible that we will go again to the EMA200 and the 0.85850 level.
For a bullish option, we need to hold above there to initiate further positive consolidation. Potential higher targets are 0.85900 and 0.86000 levels. For a bearish option, we need a continuation of the negative consolidation below this morning’s low. With this, we form a new weekly low and confirm the pressure on EURGBP. Potential lower targets are 0.85600 and 0.85500 levels.
EURCHF chart analysis
EURCHF used this week to recover from the previous decline. Since Tuesday, we have been in a strong bullish consolidation after receiving the support of the EMA200 moving average at the 0.97200 level. That took us above the 0.97900 level this morning and the formation of the weekly high at 0.97986. Currently, we are still high and expect to break above the 0.98000 level. Potential higher targets are 0.98100 and 0.98200 levels.
We need a negative consolidation and pullback below the 0.97800 level for a bearish option. With that, we descend to a new daily low and increase the bearish momentum, heading towards the EMA50 at 0.97700. A break below this support will only increase bearish pressure on EURCHF to continue its pullback. Potential lower targets are 0.97600 and 0.97500 levels.
