EURUSD and GBPUSD: EURUSD faces resistance at 1.07600

• Yesterday, the EURUSD retreated to the 1.07100 level.
• The GBPUSD pair was forced to drop to the 1.26150 level under yesterday’s pressure.

EURUSD chart analysis

Yesterday, the EURUSD retreated to the 1.07100 level. Thus, we closed the bullish gap from the market opening on Sunday evening. The pair gains new support in that zone and initiates a bullish consolidation, returning above the EMA200 moving average. During this morning’s Asian session, we see a break above the 1.07500 level and the formation of a daily high at the 1.07600 level. EURUSD is on a roll and could climb to a new high.

Potential higher targets are 1.07700 and 1.07800 levels. We need a negative EURUSD consolidation below the 1.07400 level for a bearish option. This pulls us back below the EMA50 moving average, which will increase the bearish pressure. Potential lower targets are 1.07300 and 1.07200 levels. With these steps, we will again be forced to test the EMA200 and the weekly open price.

GBPUSD chart analysis

The GBPUSD pair was forced to drop to the 1.26150 level under yesterday’s pressure. We tested last week’s low there and managed to emerge as winners and hold above. This was followed by a strong bullish consolidation above 1.26700 and the EMA200 moving average. During this morning’s Asian trading session, the pair continues to grow above the 1.26900 level.

This led to a daily high of 1.27000; we expect the current bullish surge to push us to a new high. Potential higher targets are 1.27100 and 1.27200 levels. We need a negative consolidation and pullback below the 1.26800 level for a bearish option. Thus, we move to a new daily low and confirm the weakness of GBPUSD. After that, we can expect the pair to drop to a new lower support. Potential lower targets are 1.26700 and 1.26600 levels.

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