EURGBP and EURCHF: EURGBP still slides below 0.85550

• During the Asian trading session EURGBP continued last week’s bearish formation by falling below the 0.85550 level.
• During the Asian trading session, EURCHF tried to break above the 0.98000 level.

EURGBP chart analysis

During the Asian trading session EURGBP continued last week’s bearish formation by falling below the 0.85550 level. The pair dropped to 0.85486 and formed a seven-day low there. Currently, we are still in the support zone with a slight recovery to the 0.85550 level. It would be good to return to the 0.85600 level and skip the weekly open price.

In this way, the pair would form a bottom from which it could start a positive consolidation and recovery this week. Potential higher targets are 0.85700 and 0.85800 levels. In the zone of 0.85800 levels, we encounter the EMA200 moving average, which could slow down further recovery.

For the bearish option, we need a continuation of the negative consolidation and a drop to a new daily low. This confirms the pressure on the euro, and the potential lower targets are the 0.85400 and 0.85300 levels.

EURCHF chart analysis

During the Asian trading session, EURCHF tried to break above the 0.98000 level. We only managed one push up to 0.98048 and immediately bounced back to the previous moving zone. The inability to initiate further recovery saw the EURCHF pull back to 0.97500 and the EMA200 moving average. There, we form a daily low and stop the decline for now.

We are initiating a recovery to 0.97730 and need further positive consolidation to continue to the bullish side. Potential higher targets are 0.98100 and 0.98200 levels. We need negative consolidation and pullback below EMA200 and 0.97500 for the bearish option. With that, we go to a new daily low and confirm the bearish momentum. Potential lower targets are 0.97400 and 0.97300 levels.