EURGBP and EURCHF: EURGBP fails to gain new support
- The EURGBP pair dropped to a new weekly low on Friday at the 0.84528 level
- During this morning’s Asian session, we watched the EURCHF pull back
EURGBP chart analysis
The EURGBP pair dropped to a new weekly low on Friday at the 0.84528 level. During this morning’s Asian trading session, we saw an attempt to hold above the daily open level. In the EU session, the EURGBP broke below and descended to a new daily low at the 0.84595 level. We are still in that zone and expect to see a continuation on the bearish side. Potential lower targets are the 0.84500 and 0.84400 levels.
For a bullish option, EURGBP would have to return above the daily open price first. Then, if the pair wanted to continue his recovery, he would have to hang in there. After that, we need an impulse to start a bullish consolidation, a jump above 0.84800 and the EMA 50 moving average. This gives us the support of the moving average to continue on the bullish side. Potential higher targets are the 0.84900 and 0.85000 levels.
EURCHF chart analysis
During this morning’s Asian session, we watched the EURCHF pull back. In the EU session, the decline continued with the formation of a new low at 0.94522. For now, we are successfully holding above and moving slightly to the 0.94650 level. We need stronger bullish momentum to trigger a more concrete bullish consolidation. In the 0.94800 zone, we come across the EMA 50 moving average, where we could get its support.
This would increase optimism that the EURCHF has the strength to recover. Potential higher targets are the 0.94900 and 0.95000 levels. Moving up to 0.95000, we get support and the EMA 200 moving average. For a bearish option, we need EURCHF to fall below the 0.94500 level. With that, we move to a new weekly low, confirming our stay on the bearish side. Potential lower targets are the 0.94400 and 0.94300 levels.
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