EURUSD and GBPUSD: The Euro is holding above the 1.06000

• At the beginning of this trading week, EURUSD manages to get support at the 1.06000 level. 
• During the Asian trading session, GBPUSD managed to reach 1.22000 levels.

EURUSD chart analysis

At the beginning of this trading week, EURUSD manages to get support at the 1.06000 level. During the Asian trading session, we see a bullish impulse pushing the EURUSD to the 1.06500 level. We currently have a pullback to the initial position, but we can expect a new bullish impulse that would bring us back above the 1.06500 level.

Then we need to stay up there if we want to see the recovery continue. The next target is the 1.07000 level, last week’s high. For a bearish option, we need a negative consolidation and a pullback of the euro to the 1.06000 support level. If the euro falls below, then we are looking at the 1.05750 level of previous support from the end of the week. The impossibility of maintaining at that level will lead to the continuation of retreat to lower levels. Potential lower targets are 1.05000 and 1.04500 levels.

GBPUSD chart analysis

During the Asian trading session, GBPUSD managed to reach 1.22000 levels. The current situation is such that the pound is consolidating at that level. Looking at this consolidation, we could expect the pound to recover and move above the 1.22500 level. If it succeeds in this, the pound will have a chance to start a further recovery with a new positive consolidation.

Potential higher targets are 1.23000 and 1.23500 levels. For a bearish option, we need a negative consolidation and a drop to the 1.21500 support level. A break below would negatively impact the pound, and we could see a continuation of the pullback GBPUSD: Potential lower targets are the 1.21000 and 1.20500 levels.