EURUSD and GBPUSD: 1.25988 new weekly low for the pound

February 5, 2024

EURUSD and GBPUSD: 1.25988 new weekly low for the pound

On Friday, we saw a strong drop in EURUSD during the US session from 1.08800 to 1.07800. On Friday, during the EU session, GBPUSD was quite optimistic that it could continue further growth.

EURUSD chart analysis

On Friday, we saw a strong drop in EURUSD during the US session from 1.08800 to 1.07800. During the Asian session, the pair continued to move in that support zone, forming a new low at the 1.07674 level. The Euro remains under pressure from a strong dollar, and it could easily be the case that we see a continuation of the EURUSD pullback. Potential lower targets are 1.07600 and 1.07400 levels.

We need a positive consolidation and a move above the 1.08000 level for a bullish option. There, we need to form a bottom from which the pair would have the opportunity to start a recovery. A new bullish impulse would be a good indicator that we are heading in that direction. Potential higher targets are 1.08200 and 1.08400 levels. In the zone around 1.08400, we encountered the EMA200 moving average, which in previous weeks did not allow us to start a serious recovery.

GBPUSD chart analysis

On Friday, during the EU session, GBPUSD was quite optimistic that it could continue further growth. As the US session began, so began the troubles for the pound. Positive news for the dollar brought this pair down from 1.27725 to 1.26200, closing the previous week at 1.26400. During the previous Asian session, the pair fell to a two-week low at 1.25988.

Approaching the EU session led to the stabilization of GBPUSD, and it managed to form a bottom and start a slight recovery. We are now at the 1.26260 level and expect to see a rise to 1.26400 and test the price from the market opening last night. A break above would significantly increase the chances of further recovery; potential higher targets are 1.26600 and 1.26800 levels. EMA200 moving average is in the zone around 1.26900 levels.

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