EURUSD and GBPUSD: the pound drops to a weekly low

• Yesterday, EURUSD made a new weekly low at the 1.10556 level
• GBPUSD retreated to a fresh weekly low of 1.31455 on Thursday

EURUSD chart analysis

Yesterday, EURUSD made a new weekly low at the 1.10556 level. After that, the pair returned above 1.10700 and continued above that level. During this morning’s Asian trading session, EURUSD initiated a mild bullish consolidation up to the 1.10850 level. We expect a continuation on the bullish side and a breakthrough of this morning’s high. Potential higher targets are the 1.10900 and 1.11000 levels.

The EMA 50 and EMA 200 moving averages provide additional resistance above 1.11000. For a bearish option, we need a negative EURUSD consolidation below the 1.10700 level. Thus, we move to a new daily low and put pressure on the pair to continue with a further pullback. Potential lower targets are the 1.10600 and 1.10500 levels.

GBPUSD chart analysis

GBPUSD retreated to a fresh weekly low of 1.31455 on Thursday. After that, the pair managed to stabilize and recover to the 1.31900 level. We encountered new resistance here, and the pound had to retreat again. During this morning’s Asian trading session, the pair fell to 1.31600, gaining that new support. We have started a recovery again, now up to the 1.31800 level. Additional pressure in this zone is in the EMA 50 moving average, and we need a break above that to continue on to the bullish side.

Potential higher targets are 1.32000 and 1.32200 levels. For a bearish option, GBPUSD would have to fall below this morning’s low first. A renewed push to that level could easily push the pound below and form a new daily low. After that, it remains to see further withdrawal of the pound and the search for a new support level. Potential lower targets are 1.31400 and 1.31200 levels.