EURUSD and GBPUSD: The pound managed to start a recovery

• On Thursday, EURUSD retreated to the 1.08800 level, forming a new weekly low there.
• During this morning’s Asian trading session, GBPUSD stabilized above the 1.27500 level.

EURUSD chart analysis

On Thursday, EURUSD retreated to the 1.08800 level, forming a new weekly low there. We had a bit of luck at that point, as we got support from the EMA 200 moving average. The pullback was stopped there, and the pair started a mild bullish consolidation. During this morning’s Asian trading session, we stabilized above the 1.09100 level. We now have the support of the EMA 50 moving average and hope for further growth to the bullish side.

Potential higher targets are 1.09400 and 1.09600 levels. For a bearish option, EURUSD must initiate a bearish consolidation below the 1.08900 level. With that step, the euro will drop below the EMA 200 moving average. This is a confirmation for us that we are turning to the bearish side and that a further retreat will follow. Potential lower targets are 1.08800 and 1.08600 levels.

GBPUSD chart analysis

During this morning’s Asian trading session, GBPUSD stabilized above the 1.27500 level. Now, at the start of the EU session, we see a new bullish impulse up to the 1.27700 level. Here, we encounter the EMA 200 moving average and expect new resistance in this zone. Last week, we made several attempts to get back above the EMA 200, but we didn’t succeed. Now, we have a new opportunity, and we could do it today.

Potential higher targets are 1.27800 and 1.28000 levels. For a bearish option, we need a negative consolidation and pullback of GBPUSD down to 1.27400 this morning’s low. With the impulse below the pound, it will form a new daily low and thus strengthen the bearish momentum. After that, the pair will have to give way and look for new support. Potential lower targets are 1.27200 and 1.27000 levels.

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