EURGBP and EURCHF: EURCHF jumped to 0.97828 level today

EURGBP chart analysis

This week, we are looking at EURGBP sideways movement in the 0.85300-0.85600 range. This morning, at the start of the EU session, the pair slipped to support at the 0.85300 level. After that, already in the next hour, we went back up, and now we are one step closer to the 0.85600 level. The pressure is on the upper level at the moment when we expect news from the Bank of England about the interest rate.

Forecasts are that the interest rate will remain at the same level as before, and such news could bring down the pound and send EURGBP to higher levels. Potential higher targets are 0.85650 and 0.85700 levels. We need a negative consolidation and a turn to the bearish side for a bearish option. First, we need to return to the middle of this range at the 0.85450 level. Here, we test the EMA200 moving average. By falling below, we are moving into a bearish option and will look for a pullback to the lower line of this week’s range.

EURCHF chart analysis

This morning’s Swiss National Bank news sent EURCHF to the 0.97828 level. The SNB announced that it is reducing its interest rate from 1.75% to 1.50%, thereby weakening the Swiss currency. The Euro immediately took advantage of this, and we saw a jump from 0.96800 to a new yearly high. After that, the pair makes a short pullback to 0.97400 and we are holding in that zone for now. It could easily happen that we see a new bullish impulse and continue further recovery.

Potential higher targets are 0.97800 and 0.98000 levels. We need a negative consolidation and a drop to the 0.97200 level for a bearish option first. This is where the EURCHF would show that it is under pressure and that we will see a further pullback. Potential lower targets are 0.97000 and 0.96800 levels.

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