EURGBP and EURCHF: EURGBP has a chance for a new recovery

EURGBP chart analysis

During this morning’s Asian trading session, EURGBP gained new support at the 0.84160 level. From there, a bullish consolidation was initiated to a new daily high at 0.84300. With this step, we skipped Friday’s high and formed a new higher high. This indicates to us that the euro has strength and could push this pair to higher levels. Potential higher targets are 0.84400 and 0.84500 levels.

The 200 EMA in the 0.84500 zone is a major resistance and a potential obstacle to further recovery. For a bearish option, we need a negative consolidation and a pullback below the daily open price. This will move the EURGBP to the negative side and force it to continue with the previous bearish trend. Potential lower targets are the 0.84000 and 0.83900 levels.

EURCHF chart analysis

During this morning’s Asian trading session, EURCHF successfully stabilized above the 0.93900 level. This triggered a bullish consolidation at the beginning of the EU session to the 0.94100 level. We are now close to testing Friday’s high at the 0.94180 level. Slightly above it, the pair should continue to the 0.94300 level, where the EMA 200 moving average expects it to. Potential higher targets are the 0.94400 and 0.94500 levels.

For a bearish option, we need a new negative EURCHF consolidation to this morning’s support. This time, we expect a drop below and the formation of a new weekly low. This increases the pressure on the euro, and the pair will be encouraged to retreat and look for new support. Potential lower targets are 0.93800 and 0.93700.

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