EURUSD and GBPUSD: GBPUSD under pressure to stay bullish

• On Friday, EURUSD once again tested the 1.12000 level
• On Friday, GBPUSD again encountered resistance in the zone of 1.34300

EURUSD chart analysis

On Friday, EURUSD once again tested the 1.12000 level. This time, we did not manage to hold on there; instead, we saw a pullback to the 1.11400 level. In that zone, the pair was once again supported by the EMA200 moving average, which was our support throughout the last week. The pair is still in the bullish channel, and for now, there are no signs of a change in trend.

On Monday, we expect to see the initiation of a new EURUSD bullish consolidation above the 1.11800 level. After that, we will have the opportunity to test the 1.12000 level. It would be our third test of that zone in the previous five days. This time, we hope for momentum above and the formation of a new high. Potential higher targets are 1.12200 and 1.12400 levels. We need EURUSD to fall below the EMA 200 moving average and the 1.11400 level for a bearish picture. With that step, we will form a new low and confirm the beginning of bearish swings. Potential lower targets are 1.11200 and 1.11000 levels.

 

GBPUSD chart analysis

On Friday, GBPUSD again encountered resistance in the zone of 1.34300. From that zone, the pair had to initiate a new pullback to the support zone of 1.33725. We fell below the EMA 50 moving average, which could add to the bearish pressure on Monday at the opening of the Asian session. By falling below 1.33600, we will form a new low compared to Friday and thus confirm that GBPUSD is under pressure and will continue its retreat.

Potential lower targets are 1.33400 and 1.33200 levels. At 1.33200, we will test the EMA 200 moving average in the hope of getting its floor and stopping further decline. For a bullish option, GBPUSD must return above the 1.34000 level. With that step, we turn to the bullish side again and expect a retest of last week’s resistance zone. This time, we need a break and the formation of a new high to confirm the continuation of the bullish side. Potential higher targets are 1.33600 and 1.33800 levels.

 

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