EURGBP and EURCHF: EURGBP at new weekly low at 0.84998

EURGBP chart analysis

During this morning’s Asian trading session, the EURGBP pair was maintained around the 0.85050 level. With the start of the EU session, we saw a bearish impulse to a new weekly low at the 0.84998 level. We got that support very quickly and went back above the daily open price. The pair is now in strong bullish momentum, rising to 0.85190 levels. It is necessary to stay above the 0.85100 level in order to form a new bottom from which to start further growth on the bullish side. 

Potential higher targets are 0.85200 and 0.85300 levels. We could find resistance in the EMA50 moving average at the 0.85235 level.   We need a negative consolidation and a return below the daily open price for a bearish option. Thus, we return to negative territory again, opening the door to a bearish trend. Potential lower targets are 0.85000 and 0.84900 levels.

EURCHF chart analysis

EURCHF continues to move in a steady bullish consolidation this week as well. In the first two days of this week, we struggled to break through the resistance at the 0.98900 level, partly due to the uncertainty surrounding the upcoming ECB meeting. Yesterday, we succeeded in that, and the pair climbed to the 0.99156 level, forming a new weekly high there. Today’s movement tells us that we could attack the previous high and try to form a new one above, driven by positive economic data from the Eurozone. 

Potential higher targets are 0.99200 and 0.99300 levels. We need a negative consolidation and a fall of EURCHF below the 0.98900 level for a bearish option. We will approach the weekly open price at the 0.98835 level by descending to a new daily low. A further pullback will strengthen the bearish momentum and thus increase the pressure on the euro. Potential lower targets are 0.98800 and 0.98700 levels.

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