EURUSD and GBPUSD: The Euro pulls back to the support zone

• During this morning’s Asian trading session, EURUSD rose to 1.08700 level. 
• During this morning’s Asian trading session, GBPUSD first rose to the 1.28900 level, forming a new high there. 

EURUSD chart analysis

During this morning’s Asian trading session, EURUSD rose to 1.08700 level. After forming a new high, the pair initiated a pullback to the weekly open price and the 1.08550 level. Additional support at this level is the EMA 50 moving average. We are currently seeing increased pressure on the euro in this zone, which could result in a move below. This will create a new low and confirm a weak euro.

Potential lower targets are the 1.08400 and 1.08300 levels. For a bullish option, we need a positive consolidation and retracement above the 1.08600 level. There, we will again test the EMA 200 moving average. This time, we could see a new breakout above, then try to hold there. After that, EURUSD will be in a better position to continue on the bullish side. Potential higher targets are the 1.08800 and 1.08900 levels.

GBPUSD chart analysis

During this morning’s Asian trading session, GBPUSD first rose to the 1.28900 level, forming a new high there. After that, we saw a stop there and a loss of momentum to continue on the bullish side. The pair behaved by initiating a bearish consolidation that continued at the beginning of the EU session. A strong bearish impulse influenced us to go down to 1.28452 and thus form a new weekly low.

This drop broke Friday’s low, reinforcing the continuation of the bearish consolidation. Potential lower targets are the 1.28400 and 1.28300 levels. For a bullish option, we need to get back above the 1.28700 level. With this, we return above the weekly open price to the positive side. If we manage to hold on, we will have an opportunity to start a bullish consolidation. Potential higher targets are the 1.28800 and 1.28900 levels.