EURUSD and GBPUSD: EURUSD is holding above 1.06600

• This week, we have seen consolidation and sideways movement of the EURUSD in the 1.06600-1.07300 range.
• Pair GBPUSD has been in a bearish consolidation this whole week.

EURUSD chart analysis

This week, we have seen consolidation and sideways movement of the EURUSD in the 1.06600-1.07300 range. We were slowly moving away from last week’s high at 1.07564 level. This week’s low was formed this morning at the 1.06600 level.

We have additional support here in the EMA50 moving average. During the previous Asian session, the pair moved in the zone around the EMA50 moving average. It managed to hold there, and now we see a bullish impulse in the previous hour that moves EURUSD up to 1.06800 levels.

We need a continuation of this positive consolidation to continue our recovery. Potential higher targets are 1.07000 and 1.07200 levels. For a bearish option, we need a drop below the EMA50 and 1.06600 levels, which would lead to the formation of this week’s new low, and we would have confirmation of the bearish option. Potential lower targets are 1.06400 and 1.06200 levels.

GBPUSD chart analysis

Pair GBPUSD has been in a bearish consolidation this whole week. On Friday, it climbed to the 1.24286 level, after which we began a retreat that has not continued until today. Yesterday, the pound fell to the 1.22100 level, breaking the support in the EMA50 moving average. During the previous Asian trading session, we saw consolidation in the 1.22100-1.22400 range. For now, we manage to stay in that zone and expect some recovery to the 1.22600 level.

In that zone, we encounter the EMA50 moving average, and we need a new break above to see a continuation of the recovery. Potential higher targets are 1.22800 and 1.23000 levels. For a bearish option, we need a negative consolidation and a drop below the 1.22000 support level. This would lead to the formation of a new low, and we would have confirmation of bearish momentum. Potential lower targets are 1.21800 and 1.21600 levels.

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