EURUSD and GBPUSD: EURUSD makes a pullback to 1.08500

• This week, we watched EURUSD pull back from 1.09676 levels to 1.08446 on Wednesday.
• On Wednesday, we saw GBPUSD retreat to a year’s low at 1.25965.

EURUSD chart analysis

This week, we watched EURUSD pull back from 1.09676 levels to 1.08446 on Wednesday. After that, the pair gains support and initiates a recovery to the 1.09068 level. We stop there and form a lower high. We encounter new resistance and pull back to the 1.08500 level putting pressure on the previous support zone. We managed to get support again and start a new recovery.

During the previous Asian trading session, EURUSD held above the 1.08750 level, forming a high at 1.08900. The Euro remains under pressure as we encounter new resistance and begin a pullback that is still ongoing. We have slipped below the 1.08750 level and are again leaning towards the previous support zone. Potential lower targets are 1.08600 and 1.08500 levels.

GBPUSD chart analysis

On Wednesday, we saw GBPUSD retreat to a year’s low at 1.25965. From that place we start the bullish consolidation that continues today. On the same day, we bounced back to the 1.26950 level but quickly descended, finding support at the 1.26200 level. From there, we start the recovery, grow to 1.27000 level, and stop there. We have the EMA200 moving average in that zone, which sends us down to new support at the 1.26500 level. The pair successfully gains support and rises to the 1.27150 level.

During the previous Asian trading session, GBPUSD started a new bearish consolidation, retreating below the 1.27000 level. We are currently under bearish pressure, and the pound is at 1.26650. Now, we are watching to see where a new higher low could form, or we will see a test of the previous one. Potential lower targets are 1.26400 and 1.26200 levels.