EURGBP and EURCHF: EURGBP is under pressure below 0.84700

EURGBP chart analysis

During this morning’s Asian session, EURGBP moved in the 0.84600-0.84700 range. Yesterday, we saw a pullback to a new weekly low at the 0.84566 level. Now, the pair is in a mild bullish consolidation and is trying to move above the EMA200 moving average. If he succeeds in this, he will create a better position to continue on the bullish side. After that, we can expect to see a reversal of the bullish consolidation and a return to the levels from the beginning of the week.

Potential higher targets are 0.84800 and 0.84850 levels. For a bearish option, we need a negative consolidation and a descent to test yesterday’s low. New pressure in that zone could negatively affect us to see a drop to a new weekly low. Potential lower targets are 0.84550 and 0.84500 levels.

EURCHF chart analysis

During this morning’s Asian trading session, EURCHF successfully held above the 0.97100 level. With the support of the EMA50 moving average, we can expect to see further recovery to the bullish side. This morning’s data on Swiss inflation showed a decrease in inflation. This had a negative effect on the Swiss franc, while the euro skillfully took advantage of it. The pair climbed to the 0.97556 level, forming a new July high at that point.

We are now seeing a pullback from that level to 0.97250, and it is possible that we will see a retest of the EMA50 moving average. If the support holds, EURCHF will have an opportunity to initiate another positive consolidation and retest today’s high. Potential higher targets are 0.97600 and 0.987800 levels.

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