EURUSD and GBPUSD: EURUSD above support at 1.08200 level

• During the Asian trading session, the EURUSD was in a slight pullback to support at the 1.08118 level.
• During the Asian trading session, GBPUSD receives support at the 1.26570 level. 

EURUSD chart analysis

During the Asian trading session, the EURUSD was in a slight pullback to support at the 1.08118 level. From that place, the pair starts with a positive consolidation, and in the EU session, it goes above the 1.08200 level, continuing last week’s bullish consolidation. Monday tells us for now that we can expect a continuation of the EURUSD recovery and a move to higher levels.

Potential higher targets are 1.08400 and 1.08500 levels. For a bearish option, we need a test of the Asian low at the 1.08110 level. A drop below could push the euro in search of new support. We would first look for the 1.08000 level, and additional support in that zone is the EMA200 moving average. If we fail to hold above these support levels, the pair will be forced to pull back below. Potential lower targets are 1.07900 and 1.07800 levels.

GBPUSD chart analysis

During the Asian trading session, GBPUSD receives support at the 1.26570 level. With the beginning of the EU session, the pound gains strength and climbs to the 1.26750 level, forming a daily high. We expect to see a continuation of the positive consolidation and start a recovery above the 1.26800 level. After that, we could think about visiting the upper levels from Friday. Potential higher targets are 1.26900 and 1.27000 levels.

For the bearish GBPUSD option, we need a pullback to test the Asian low at the 1.26570 level. A fall below it would lead to the formation of a new daily low and thus confirm that the pound is losing strength. After that, we expect a pullback and a visit to lower support levels. Potential lower targets are 1.26500 and 1.24000 levels. EMA200 is at 1.26400, and we can hope for better support there.