EURUSD and GBPUSD: Move Up

• During the Asian trading session, the euro hovered around the 1.00000 level.
• During the Asian trading session, the pair GBPUSD managed to stay above the 1.17000 level.
• As the cost-of-living crisis deepens, the UK credit card lending has risen by the most since 2005.

EURUSD chart analysis

During the Asian trading session, the euro hovered around the 1.00000 level. After that, we see a bullish impulse that pushed the euro to the 1.00500 level. Now we are trying to maintain ourselves at that level. We need a break above and a continuation of positive consolidation to continue the bullish option. Potential higher targets are 1.01000 and 1.01500 levels. For a bearish option, we need a new negative consolidation and a return of the euro to the 1.00000 support level. Additional supports at that point are our MA20 and MA50 moving averages. A break below would increase bearish pressure on the pair, and we would likely see a continuation of the pullback towards lower support levels. Potential lower targets are 0.99500 and 0.99000 levels.

GBPUSD chart analysis

During the Asian trading session, the pair GBPUSD managed to stay above the 1.17000 level. After that, we see a bullish impulse that took us up to the 1.17600 level. We did not stay in that place for long, and a new pullback to the 1.17700 level of support followed. we need a new positive consolidation and a break above today’s high to continue the bullish option. If the pound manages to move up, the first target is at the 1.18000 level. Additional resistance at that point is in the MA200 moving average. Potential higher targets are 1.18500 and 1.19000 levels. We need GBPUSD to fall below the 1.17000 level for a bearish option. After that, the pair could go down to yesterday’s low of 1.16500. A break below the pound would form a new two-year low. Potential lower targets are 1.16000 and 1.15500 levels.

Market Overview

As the cost-of-living crisis deepens, UK credit card lending has risen by the most since 2005, data released by the Bank of England showed on Tuesday. Consumers borrowed an extra £740bn on their credit cards in July. This is 13.0% more than last year, the most since October 2005.