EURUSD and GBPUSD: EURUSD dropped to 1.0850 last night

Last night, EURUSD retreated to a new weekly low at 1.08048 level.
This morning, we saw GBPUSD fall to a new weekly low at 1.26756. 

EURUSD chart analysis

Last night, EURUSD retreated to a new weekly low at 1.08048 level. The pair managed to gain support at that level, and during the Asian trading session, we moved in the 1.08050-1.08150 range. We are now putting pressure on the daily open price at the 1.08150 level, expecting to move above and form a new daily high. Potential higher targets are 1.08200 and 1.08300 levels.

In the zone of 1.08300 levels, EURUSD encounters the EMA200 moving average, and there, we expect increased resistance to further recovery. We need a pullback to the 1.08050 support level for a bearish option. This would be the third time in the last 24 hours that we would put pressure on that level, which this time could produce a descent below to a new low. Potential lower targets are 1.08000 and 1.07900 levels.

GBPUSD chart analysis

This morning, we saw GBPUSD fall to a new weekly low at 1.26756. We stayed below briefly, and the pair quickly moved to 1.26925. We return to the Asian movement range of 1.26850-1.27000. It is possible that the bearish attempt has been broken and that we will now see the initiation of a bullish consolidation. By jumping above the 1.27100 level, we get the support of the EMA50 moving average, which will strengthen the optimism for the continuation to the bullish side.

Potential higher targets are 1.27200 and 1.27300 levels. We need a negative consolidation and a new pullback below the 1.26850 level for a bearish option. This brings us back to the critical zone and puts pressure on this morning’s low. In the 1.26725 zone, we will test the EMA200 moving average, expecting its support and stopping further decline.

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