EURUSD and GBPUSD: The Euro continues to consolidate

• During the Asian trading session, the EURUSD found support at the 1.05750 level.
• During the Asian trading session, GBPUSD falls to a two-week low at 1.20800.

EURUSD chart analysis

During the Asian trading session, the EURUSD found support at the 1.05750 level. After that, the euro started a bullish impulse, and the pair reached the 1.06400 level. We are currently holding at that level and making a minor pullback to the 1.06250 level. We need a positive consolidation and a move above the 1.06500 level for a bullish option.

If we could do that and keep it up, we would have a good chance of seeing the recovery continue. Potential higher targets are 1.06750 and 1.07000 levels. We need a negative consolidation and pullback below the 1.06000 level for a bearish option. Then we would again be in a situation to test the support at the 1.05750 level. A break below could further destabilize the EURUSD and send it even lower. Potential lower targets are 1.05500 and 1.05000 levels.

GBPUSD chart analysis

During the Asian trading session, GBPUSD falls to a two-week low at 1.20800. It is quickly consolidating and returning above the 1.21000 level. We need to move back above the 1.21500 level and, with positive consolidation, continue the bullish option. The next target is the 1.22000 level; we need a break above that level.

Then we need to stay up if we want to see a new bullish impulse and GBPUSD growth. Potential higher targets are 1.22500 and 1.23000 levels. We need a negative consolidation and pullback below the 1.21000 level for a bearish option. A breakout of the pound below could mean we could see further declines to lower support levels. Potential lower targets are 1.20500 and 1.20000 levels.