EURUSD and GBPUSD: Pound tries to release pressure at 1.2800

On Friday, EURUSD initiated a strong bullish consolidation and climbed to 1.09200, forming a two-week high at that level.
During this morning’s Asian trading session, GBPUSD fell once again to the 1.27000 level. 

EURUSD chart analysis

On Friday, EURUSD initiated a strong bullish consolidation and climbed to 1.09200, forming a two-week high at that level. During this morning’s Asian trading session, the pair moved in the 1.09000-1.09400 range. With the loss of the EU session, the euro gained strength and broke above last week’s high. A new daily high was formed at the 1.09670 level, a five-month high. The dollar is under pressure due to the situation in the Middle East, which the euro skillfully uses.

Potential higher targets are 1.09800 and 1.10000 levels. For a bearish option, the EURUSD must pull back the unit of the previous movement zone. After that, we expect pressure on the 1.09000 level, which could produce another bearish impulse and drop to a new daily low. Potential lower targets are 1.08800 and 1.08600 levels.

GBPUSD chart analysis

During this morning’s Asian trading session, GBPUSD fell once again to the 1.27000 level. We quickly got support down there, after which the pair recovered to 1.28000. Here, we will try to test the weekly open price. If we remain under pressure and do not move above, we can expect further pullback and the initiation of bearish consolidation. A new visit to 1.27000 would put the pound under more pressure to continue retreating.

Potential lower targets are the 1.26800 and 1.26600 levels. For a bullish option, we need a positive consolidation and stabilization of GBPUSD above the 1.28000 level. Thus, we return above the weekly open price, and we could expect to start a further recovery on the bullish side. Potential higher targets are the 1.28200 and 1.28400 levels. It will be interesting to see how the pair behaves in the zone around the EMA 200 moving average.

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