EURGBP and EURCHF: EURGBP in impulse above 0.86000

• EURGBP is currently on an upward trajectory, reaching a new weekly high at the 0.86208 level. 
• This week, we are witnessing a promising recovery in EURCHF from the 0.97400 level. 

EURGBP chart analysis

EURGBP is currently on an upward trajectory, reaching a new weekly high at the 0.86208 level. This surge is primarily driven by the Bank of England’s interest rate announcement, a crucial event in the financial landscape. The data revealed that the interest rate will remain steady at 5.25%, a decision that will likely impact all GBP pairs.

We anticipate further market volatility as Bank of England Governor Bailey is scheduled to speak. This could potentially propel the EURGBP to a new weekly high level.

It’s crucial to closely monitor the EURGBP pair as it continues its upward climb. Potential higher targets for the pair are the 0.86300 and 0.86400 levels. However, we should also be prepared for a bearish option, which would require a pullback to the 0.86000 level.

This would bring us back to the previous movement zone, with support at the EMA50 moving average just below that level. If bearish pressure intensifies, the pair could easily slide to a new daily low. In such a scenario, potential lower targets are the 0.85900 and 0.85800 levels.

EURCHF chart analysis

This week, we are witnessing a promising recovery in EURCHF from the 0.97400 level. On Tuesday, we formed a weekly high at the 0.97792 level. After that, we stop there and pull back below the 0.97650 level. Additional bearish pressure is created by the EMA200 moving average, which pushes us to the 0.97550 support level.

A longer hold below the EMA200 could increase the pressure on the euro and send the EURCHF to a new low. However, we remain optimistic as potential lower targets are 0.97500 and 0.97450 levels.

For a bullish option, EURCHF would have to move above the EMA200 and the 0.97700 level. This would indicate a significant shift in market sentiment and could potentially lead to a sustained upward movement. Then, we also need to hold on above and form a new bottom.

This would confirm the strength of the bullish trend and could attract more buyers. After that, we need the initiation of a positive consolidation to continue on the bullish side. This would indicate that the market is stabilizing at higher levels and could lead to further upward movement. Potential higher targets are 0.97750 and 0.97800 levels.