EURUSD and GBPUSD: GBPUSD continues to recover to 1.22000

• The pair EURUSD is in an upward trend after falling on Tuesday to the 1.04485 level.
• On Wednesday, GBPUSD fell to a new six-month low at 1.20372.

EURUSD chart analysis

The pair EURUSD is in an upward trend after falling on Tuesday to the 1.04485 level. A three-day high was formed last night at the 1.05520 level, and during the Asian trading session, we had a pullback to support at the 1.05320 level. We managed to get support at that level, and now we see a bullish impulse and the start of a new bullish consolidation. At the current level, we are also testing the EMA50 moving average, and we need a break above it for further continuation to the bullish side. Potential higher targets are 1.05600 and 1.05800 levels.

We need negative consolidation and drop EURUSD to the 1.05000 support level for the bearish option. A breakthrough below that zone would affect the pair continuing to pull back, looking for the next support in the previous low. The inability to maintain at that level will create a breakthrough and the formation of a lower low. The potential lower targets are 1.04400 and 1.04200 levels.

GBPUSD chart analysis

On Wednesday, GBPUSD fell to a new six-month low at 1.20372. After that, he managed to consolidate at that level and initiate a new bullish consolidation. We are now within reach of reaching the 1.22000 level. We have additional support in the EMA50 moving average and the zone around the 1.21750 level. We now expect to see the pound continue to recover by rising to higher levels. Potential higher targets are 1.22200 and 1.22400 levels.

We need a negative consolidation and a drop in GBPUSD to 1.21500 levels for a bearish option. After that, we would be forced to go down to support at the 1.21000 level. A break below would take us back to the previous low for testing. Potential lower targets are 1.20500 and 1.20000 levels.