EURUSD and GBPUSD: the pound could hit a new weekly high

• Yesterday, EURUSD saw a new support level at 1.10800
• Last night, GBPUSD climbed to a new weekly high at 1.31856

EURUSD chart analysis

Yesterday, EURUSD saw a new support level at 1.10800. The pair managed to hold above the EMA 200 moving average, which reinforced the bullish movement. During this morning’s Asian session, we continued to grow up to 1.11200 levels. In this zone, we are testing the weekly high and expecting a transition to a new one. Potential higher targets are 1.11300 and 1.11400 levels.

For a bearish option, EURUSD would have to initiate a bearish consolidation and drop below the 1.11100 level. Thus, the pair moves to the bearish side below the daily open price. After that, we expect a continuation of the pullback and the formation of a new daily low. Potential lower targets are 1.11000 and 1.10900 levels. In the 1.10900 zone, we would again try to get the EMA 200 moving average support to stay on the positive side.

GBPUSD chart analysis

Last night, GBPUSD climbed to a new weekly high at 1.31856. During this morning’s Asian session, we managed to hold high in the 1.31700-1.31800 range. The pair is once again leaning to the bullish side and hints that we could soon see the initiation of bullish consolidation and growth to a new weekly high. Potential higher targets are 1.31900 and 1.32000 levels. A climb to 1.32000 will test last Friday’s high.

For a bearish option, we need a negative GBPUSD consolidation first below the 1.31700 level. With that step, we move to a new daily low and confirm the bearish presence. After that, we expect to see a pullback and testing of lower levels. Potential lower targets are the 1.31600 and 1.31500 levels. At 1.31600, we will test the EMA 50 moving average in the hope of getting its support.