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EURUSD and GBPUSD: GBPUSD is close to testing Friday’s high

Euro and sterling remained firm on Wednesday. Why's that? 

EURUSD and GBPUSD: GBPUSD is close to testing Friday’s high

  • During the Asian trading session, EURUSD moved in the 1.08450-1.08500 range.
  • During this morning’s Asian trading session, GBPUSD moved in the 1.27330-1.27450 range, maintaining its high compared to the previous week.

EURUSD chart analysis

During the Asian trading session, EURUSD moved in the 1.08450-1.08500 range. The market was quite calm, and now, at the start of the EU session, an increase in volatility can be seen. For now, the pair remains above the weekly open price, staying on the positive side. To continue on the bullish side, we need a positive consolidation and a jump to the 1.08600 level. With that movement, we get out of this morning’s range of motion and get rid of the pressure.

Potential higher targets are 1.08700 and 1.08800 levels. If we see a pullback below the 1.08450 level, we move below the weekly open price to the bearish side. That could trigger a further EURUSD pullback to new support. Potential lower targets are 1.08400 and 1.08300 levels.

EURUSD chart analysis

 

GBPUSD chart analysis

During this morning’s Asian trading session, GBPUSD moved in the 1.27330-1.27450 range, maintaining its high compared to the previous week. Now, at the beginning of the EU session, we see a slight bullish consolidation and expect to see a break above the upper line of this morning’s range. We will test Friday’s high by moving up to the 1.27500 level. Potential higher targets are 1.27600 and 1.27700 levels.

For a bearish option, we need the initiation of a bearish consolidation below the 1.27300 level. With that step, we move to the negative side, falling below the weekly open price. This would only increase the bearish pressure, and GBPUSD would have to look for new support at lower levels. Potential lower targets are 1.27200 and 1.27100 levels. In the 1.27250 zone, we encounter the EMA50 moving average, which could slow down this decline and support us like last week.

GBPUSD chart analysis

 

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