EURGBP and EURCHF: EURGBP is under pressure at 0.85550

• EURGBP is under strong pressure to slide to a new three-week low soon.
• This morning, a new EURCHF three-week higher high was formed in the Asian session at the 0.98940 level.

EURGBP chart analysis

EURGBP is under strong pressure to slide to a new three-week low soon. On Friday, before the market’s closing, the pair retreated to the 0.85546 level. During this morning’s Asian trading session, the pair EURGBP tried to recover but only reached the 0.85680 level. We started another pullback from that level and are now at 0.85566, testing the previous low.

A new bearish impulse would quickly send us to a new low and thus confirm the weak euro. Potential lower targets are 0.85500 and 0.85450 levels. We need a positive consolidation and a return above the 0.85700 level for a bullish option. This moves us above the EMA50 moving average, and we hope for its support. Potential higher targets are 0.85750 and 0.85800 levels. In the 0.85800 zone, we will have the next major resistance in the EMA200 moving average.

EURCHF chart analysis

This morning, a new EURCHF three-week higher high was formed in the Asian session at the 0.98940 level. After that, the pair stops there, stalling its growth. A bearish momentum is starting, and now we are at the 0.98740 level. The current picture tells us we should expect a bigger pullback this week. Potential lower targets are 0.98600 and 0.98500 levels.

The first support is in the EMA50 moving average around the 0.98600 level. EURCHF must return above the 0.98835 weekly open price for a bullish option. This brings us back to the positive side. Then, we have to hold our ground again to initiate a positive consolidation for a new recovery. Potential higher targets are 0.99000 and 0.99100 levels.

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