EURUSD and GBPUSD: The EUR/USD pair climbed to 1.04200

• Pair EURUSD climbs to a new four-month high up to 1.04200 levels.
• During the Asian trading session, the pound initiated a new bullish consolidation above the 1.17000 level.

EURUSD chart analysis

Pair EURUSD climbs to a new four-month high up to 1.04200 levels. During the Asian trading session, the euro consolidated around the 1.30000 level. From that consolidation, we see a new bullish impulse and climb the euro to the 1.04000 level. It would be great for the euro if it managed to stay above the 1.03500 level because then it would have a good basis for the next bullish impulse. Potential higher targets are 1.04500 and 1.05000 levels.

For a bearish option, we need a negative consolidation and a pullback of the euro below the support at the 1.03000 level. A breakout of the euro below that support level could further shake the EURUSD leading to a further pullback. Potential lower targets are 1.02500 and 1.02000 levels.

GBPUSD chart analysis

During the Asian trading session, the pound initiated a new bullish consolidation above the 1.17000 level. Soon the pound crossed above the 1.18000 level, and now we may test last week’s high at the 1.18550 level. For a bullish option, we need a break above and a move toward the 1.19000 level. Then we need to hold on there and, with a new bullish impulse, continue the further recovery of the pound. A potential higher target is 1.20000 levels.

For a bearish option, we need a negative consolidation and a drop below the 1.17000 level. After that, the bearish trend could continue and retreat to the 1.16000 level. If we were to see a break below, then an even bigger pullback could take place in the pound. Potential lower targets are 1.15000 and 1.14000 levels.