EURUSD and GBPUSD: Pound under pressure at 1.24000

• Yesterday, EURUSD fell to a new six-month low at 1.06319.
• Pair GBPUSD fell below the 1.24000 level yesterday, forming a new lower low at 1.23967.

EURUSD chart analysis

Yesterday, EURUSD fell to a new six-month low at 1.06319. The reason for this decline is the interest rate increase by the EBC, which means that the euro is weak and needs help to strengthen. During the Asian trading session, we saw that the EURUSD managed to form a bottom in the support zone and initiate a bullish consolidation. We are now at the 1.06685 level, and we could expect the euro to continue above the 1.06800 level.

Potential higher targets are 1.07000 and 1.07200 levels. We will have additional resistance in the EMA50 moving average and the zone around 1.07200 levels. We need a negative consolidation and a new pullback below the 1.06400 level for a bearish option. Then, we would retest the 1.06319 previous low. A break below would mean further weakening of the EURUSD, and the potential lower targets are the 1.06200 and 1.06000 levels.

GBPUSD chart analysis

Pair GBPUSD fell below the 1.24000 level yesterday, forming a new lower low at 1.23967. After that, we found support at that level and started a new bullish consolidation from there. During the Asian trading session, we saw bullish consolidation and a jump to 1.24385.

If we were to break above the 1.24500 level, we would be in a good position to continue the recovery. Potential higher targets are 1.24750 and 1.25000 levels. The pound has additional resistance in the EMA50 moving average in the zone around 1.25000 levels. We need a negative consolidation and a return to the zone around the 1.24000 support level for a bearish option. A break below could form a new lower low. Potential lower targets are 1.23750 and 1.23500 levels.

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