- The EURUSD pair fell to the 1.05750 support level yesterday.
- Yesterday GBPUSD fell to a new December low at the 1.20000 level.
EURUSD chart analysis
The EURUSD pair fell to the 1.05750 support level yesterday. After that, we see the euro find support at that point, and during the Asian trading session, EURUSD returns above the 1.06000 level. We are currently managing to hold above this level and could expect a slow recovery to continue. We need to reach the 1.06500 level again.
Then we need a break above and try to hold up there if we want to see further bullish recovery. For a bearish option, we need a negative consolidation and a new test of support at the 1.05750 level. A drop in the euro below could bring us a continuation of the EURUSD weakening. Potential lower targets are 1.05500 and 1.05000 levels.
GBPUSD chart analysis
Yesterday GBPUSD fell to a new December low at the 1.20000 level. After that, we saw a minor recovery that continued during the Asian trading session. Today’s high was at the 1.20750 level, where we have less resistance for now. There is a higher chance of seeing a continuation of the bullish option up to the 1.21000 level. Then we need to move above and try to stay up there.
With the next bullish impulse, we would continue the recovery of GBPUSD: Potential higher targets are 1.21500 and 1.22000 levels. For a bearish option, we need to go back to the previous support zone at 1.20000. A break below would form a new lower low, which is a sign of a possible further weakening of the pound. Potential lower targets are 1.19500 and 1.19000 levels.