EURUSD and GBPUSD: EURUSD stabilizes before the ECB report
- During this morning’s Asian trading session, EURUSD made a retreat to the 1.09154 level
- During this morning’s Asian trading session, GBPUSD was under pressure to a new low of 1.30400
EURUSD chart analysis
During this morning’s Asian trading session, EURUSD made a retreat to the 1.09154 level. After receiving new support at that level, the pair starts with bullish consolidation up to the 1.09320 level. We are on our way to return to the weekly open level and climb to the positive side. If we can do that, the chances of seeing further progress with the help of the EMA 50 moving average increase.
Potential higher targets are 1.09500 and 1.09600 levels. For a bearish option, we need a negative consolidation and pullback of EURUSD to the 1.09200 support zone. This time, we expect the euro to take a step lower to a new daily low. Potential lower targets are 1.09150 and 1.09100 levels. We also do not rule out testing last week’s low at the 1.09000 level.
GBPUSD chart analysis
During this morning’s Asian trading session, GBPUSD was under pressure to a new low of 1.30400. After that, we saw the initiation of a bullish consolidation of the pound back to the daily open level. Here, we hope that EMA 50’s moving average support will stay on the bullish side for continued recovery. Potential higher targets are 1.30800 and 1.30900 levels.
For a bearish option, we need a negative consolidation and a new pullback of GBPUSD down to the support zone. This time, we hope that the pound will not hold and will make an impulse down to a new daily low. Potential lower targets are 1.30300 and 1.30200 levels. Tomorrow’s news on British inflation could determine the next trend of GBPUSD. Expectations are that we will see a drop in inflation, which should signal the Bank of England to continue cutting interest rates.
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