EURUSD and GBPUSD: Euro steady as pound stumbles

• During the Asian trading session, the pair EURUSD continued the bullish consolidation from yesterday.
• GBPUSD fell yesterday to the December low at the 1.20500 level.

EURUSD chart analysis

During the Asian trading session, the pair EURUSD continued the bullish consolidation from yesterday. This morning we found ourselves again above the 1.06500 level, and then the euro retreated to the 1.06250 support level. We see a new bullish impulse that could take us back up to the 1.06500 level. We need a break above this level for a bullish option and try to stay up there.

With a new impulse, we could continue further recovery. The next higher target is the 1.07000 level, the previous high from last December 15. We need a negative consolidation and a drop to the 1.06000 support zone for a bearish option. If the euro breaks below, we could see a retreat to even lower levels. Potential lower targets are 1.05750 and 1.05500 levels.

GBPUSD chart analysis

GBPUSD fell yesterday to the December low at the 1.20500 level. During the Asian trading session, we recovered to the 1.21500 level. A new pullback followed, and the pound retreated again. This morning’s data from the UK showed a decline in the GDP of the British economy. The estimate was that GDP growth would be around 2.4%, and the results showed a growth of 1.9%. Disappointing results are likely to weigh on the British currency in the future.

For a bearish option, we need a continuation of the negative consolidation and a drop back to support at the 1.20500 level. A break below would mean we could see continued weakness in the pound. Potential lower targets are 1.20000 and 1.19500 levels. We need a positive consolidation and a move above the 1.21500 level for a bullish option. That would break the upper line of this descending channel. If we manage to hold higher, potential higher targets are 1.22000 and 1.22500 levels.