EURUSD and GBPUSD: The euro continues to recovery

• During the Asian trading session, EURUSD found support at 1.05000 and continued the bullish trend.
• After Friday’s GBPUSD pullback to 1.22000 levels, we now see a recovery and a potential retest of 1.23000 resistance.

EURUSD chart analysis

During the Asian trading session, EURUSD found support at 1.05000 and continued the bullish trend. The pair soon crosses above the 1.05500 level and continues towards the 1.06000 level. Soon we could not find the zone of the previous high where we could expect some resistance. We need a break above and try to stay up there. Then with the new bullish consolidation, we continue the bullish option.

Potential higher targets are 1.06500 and 1.07000 levels. For a bearish option, we need a negative consolidation and a drop along the current support zone at the 1.05000 level. A break below would signal to us that a deeper pullback of the euro could occur. The next important support is at 1.04500, where we had some support last week. Potential lower targets are 1.04000 and 1.03500 levels.

GBPUSD chart analysis

After Friday’s GBPUSD pullback to 1.22000 levels, we now see a recovery and a potential retest of 1.23000 resistance. During the Asian trading session, the pound consolidated above the 1.22000 level, followed by a bullish impulse. We are now at 1.22900 and could soon find ourselves above the 1.23000 level. Then we need to try to keep up there.

With the new positive consolidation, we could continue the further recovery of GBPUSD. Potential higher targets are 1.23500 and 1.24000 levels. For a bearish option, we need a negative consolidation and pullback to this morning’s support at the 1.22000 level. A drop below would signal to us that we could see a continuation of the bearish option. Potential lower targets are 1.21500 and 1.21000 levels.