EURUSD and GBPUSD: The Euro Jumped to the 0.99000 level

• At the opening of the Asian trading session, the euro jumped to the 0.99000 level.
• Simultaneously, the pound jumped to the 1.14000 level.

EURUSD chart analysis

At the opening of the Asian trading session, the euro jumped to the 0.99000 level. A pullback soon followed that closed the opening gap, and now the EURUSD pair is looking for potential support at the 0.98250 level. Since the opening of trading, the euro has lost 0.25% of its value against the US dollar. 

We need a continuation of the negative consolidation and a pullback below the 0.98000 level for a bearish option. After that, the euro would probably continue its retreat, and we would look for the first support at the 0.97500 level. If we fail to do so, we look for the next support in the support zone around the 0.97000 level. 

We need positive consolidation and a return to this morning’s high at the 0.99000 level for a bullish option. Then we need to stay at that level, and with a new bullish impulse, we would see the continued recovery of the euro. Potential higher targets are 0.99500 and 1.00000 levels.

GBPUSD chart analysis

At the opening of the Asian trading session, the pound jumped to the 1.14000 level. After which, we see a pullback that should close the gap from the opening. The pound is slowly sliding towards the 1.13000 level, and here we could establish the first level of support. For a bearish option, we need a continuation of the negative consolidation and a drop below the 1.13000 level. 

Potential lower targets are 1.12000 and 1.11000 levels. Additional support at the 1.11000 level is in the lower trend line. For a bullish option, we need a positive consolidation and a new move above the 1.14000 level. Then we need to stay there. 

And after that, with a new bullish consolidation, we could expect a further recovery of the pound. A potential higher target is the 1.15000 October high.

Market overview

Former British Prime Minister Boris Johnson has abandoned his intention to run again for Conservative Party leader and Prime Minister after doubts among Conservative MPs that he has enough support for a political comeback.

While part of the conservatives believe that Johnson could once again bring the party victory in the elections, many have warned that his return would be a disaster after a series of scandals during his tenure, the world media write. With his retirement, former finance minister Rishi Sunak is the favorite to succeed Liz Truss as Conservative leader and prime minister.