EURUSD and GBPUSD: GBPUSD returns to 1.27250 and EMA200

• During this morning’s Asian trading session, EURUSD moved in the 1.08480-1.08600 range.
• In this morning’s Asian session, GBPUSD encountered resistance at the 1.27560 level.

EURUSD chart analysis

During this morning’s Asian trading session, EURUSD moved in the 1.08480-1.08600 range. At the beginning of the EU session, we continued in the same range, and for now, we do not have the appropriate volatility that would create a stronger impulse in some direction. On the downside, around 1.08400, we have the support of the EMA200 moving average, which gives a promising picture that we should continue to the bullish side.

An impulse to 1.08700 would be the first sign that EURUSD is waking up and bullish consolidation is to follow. Potential higher targets are 1.08800 and 1.08900 levels. We need a negative consolidation and a drop to the EMA200 moving average support for a bearish option. The descent below tells us that the euro has no strength to recover and that we are turning to the bearish side. Potential lower targets are 1.08300 and 1.08200 levels.

GBPUSD chart analysis

In this morning’s Asian session, GBPUSD encountered resistance at the 1.27560 level. After that, we see the initiation of bearish consolidation and are now at the 1.27280 level. We are close to testing the EMA200 moving average in the zone of 1.27200 levels. With the new support, we could turn again to the bullish side and start a new positive consolidation. With a return above 1.27500, the pair returns to the positive side, skipping the weekly open price.

Potential higher targets are 1.27600 and 1.27700 levels. A break below the EMA200 and the 1.27000 level will increase the bearish pressure on GBPUSD. This leads to a new weekly low descent and confirms the bearish momentum. Potential lower targets are 1.27100 and 1.27000 levels. This brings us back to last week’s support zone.

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