EURUSD and GBPUSD: EURUSD is slowing the bullish scenario

• During this morning’s Asian session, EURUSD encountered resistance in the 1.11800 zone
• Last night, GBPUSD rose to 1.32666, a new weekly high

EURUSD chart analysis

During this morning’s Asian session, EURUSD encountered resistance in the 1.11800 zone. This led to the initiation of a bearish consolidation and a drop to the 1.11340 level. We are well away from this week’s high of 1.12000, which could add to the bearish momentum. If bearish consolidation continues, EURUSD will form a new weekly low. Potential lower targets are 1.11200 and 1.11100 levels.

We expect additional support and interruption of further retreat in the EMA 200 moving average at the 1.11150 level. For a bullish option, we need a positive consolidation and a return above the 1.11500 level. If the pair finds itself there, it will be in a better position for further recovery. Potential higher targets are the 1.11600 and 1.11700 levels.

GBPUSD chart analysis

Last night, GBPUSD rose to 1.32666, a new weekly high. After that, during this morning’s Asian trading session, the pound started a retreat that continued through the EU session until it reached the 1.32150 level. Here, we will try to get the EMA 50 moving average support. If the pressure on the pair continues, a drop below is inevitable, as is the formation of a new daily low.

Potential lower targets are 1.32000 and 1.31800 levels.  The EMA 200 moving average could be the next important support, down in the 1.31000 zone. For a bullish option, we need a positive consolidation and a move above the 1.32400 level. If we succeed in that, I will have an opportunity to return to the bullish side because we have formed a higher low compared to the day before. Potential higher targets are 1.32600 and 1.32800 levels.