EURUSD and GBPUSD: The pound falls to a new weekly low

In the second part of this week, EURUSD mostly moved in the 1.08300-1.08600 range. 
On Thursday, GBPUSD retreated to a new weekly low at 1.28498. 

EURUSD chart analysis

In the second part of this week, EURUSD mostly moved in the 1.08300-1.08600 range. During this morning’s Asian trading session, the pair tested the upper level of the range but did not have the strength to move above it. After that, we saw a pullback to the 1.08500 level, where we are now. Since Wednesday, the pair has been in a mild bullish trend with the formation of a higher low. This indicates that we could see further recovery if this trend continues.

Potential higher targets are the 1.08700 and 1.08800 levels. For a bearish option, we need a negative consolidation and a drop below 1.08400, this morning’s low. EURUSD would then be under more pressure as it would move to the negative side. After that, we will again try to test the support zone around 1.08300. Potential lower targets are the 1.08200 and 1.08100 levels.

GBPUSD chart analysis

On Thursday, GBPUSD retreated to a new weekly low at 1.28498. During this morning’s Asian trading session, the pair tried to start a recovery but was stopped at the 1.28700 level. The pound is now under pressure again and could initiate another pullback to last night’s low. The pair could very easily fall below and form a new lower low.

Potential lower targets are the 1.28400 and 1.28300 levels. For a bullish option, GBPUSD would have to stabilize above the 1.28700 level. After that, we can expect the initiation of further bullish consolidation up to 1.28800 and the EMA 50 moving average. If we get that support, it could strengthen the bullish momentum. Potential higher targets are the 1.28900 and 1.29000 levels.

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