EURUSD and GBPUSD: GBPUSD rises to a new high for the year

On Friday evening, EURUSD rose to 1.09114 level.
On Friday evening, GBPUSD rose to 1.29884 level.

EURUSD chart analysis

On Friday evening, EURUSD rose to 1.09114 level. We saw a bearish gap from that level to 1.08850 at the market opening last night. During this morning’s Asian session, the pair recovered slightly to 1.08960. There, we encounter resistance and turn to the bearish side again. The Euro is now at 1.08880, and we expect to test this morning’s support level soon. It is possible for the EURUSD to break below and form a new daily low.

At 1.08770, we will test the EMA 50 moving average support. Last week, the pair had his support. This time, we could see a breakout below and a drop to a new low. Potential lower targets are 1.087000 and 1.08600 levels. We need a break above today’s high at 1.08960 for a bullish option. That could trigger a bullish consolidation that would close this morning’s gap. The pair would return above the 1.09000 level. This brings us closer to last week’s high, and we will have the opportunity to climb to a new one. Potential higher targets are 1.09100 and 1.09200 levels.

GBPUSD chart analysis

On Friday evening, GBPUSD rose to 1.29884 level. A new 12-month high was formed there. At last night’s market opening, we saw a small bearish gap and a pullback to the 1.29600 level. The pair is under pressure to initiate a bearish consolidation if it does not close this gap and return above the weekly open price. A step down to 1.29400 takes us to a new daily low. There, we will test the EMA 50 moving average. If even that support is not enough, GBPUSD will have to start a further retreat.

Potential lower targets are 1.29200 and 1.29000 levels. EMA 200 moving average is in the zone of 1.28400 levels. By returning above the weekly open price, the pound would return to the positive side. This is where we would test last week’s high. Potential higher targets are 1.30000 and 1.30200 levels.

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