EURGBP: 0.85500 Failed – How Low Can it Go From Here?
- During the Asian trading session, the EURGBP tried to reach the 0.85500 level but failed to do so.
- During the Asian trading session, EURCHF began to retreat from the 0.94424 level.
EURGBP chart analysis
During the Asian trading session, the EURGBP tried to reach the 0.85500 level but failed to do so. The opposite happened, and it managed to pull back to the 0.85300 level. It is also negative that the pair has retreated below the EMA200 moving average and is now under greater pressure to continue on the bearish side. Potential lower targets are 0.85250 and 0.85200 levels. Last week’s low was at the 0.85162 level.
For a bullish option, we need a positive consolidation and a return of EURGBP to the 0.85450 level. This would move us above the EMA200, and we expect its support for continued recovery. Potential higher targets are 0.8550 and 0.85550 levels. Last week’s high for EURGBP was at the 0.85720 level.
EURCHF chart analysis
During the Asian trading session, EURCHF began to retreat from the 0.94424 level. The withdrawal continued in the EU session, and the pair made a low at the 0.94150 level. The euro has been under pressure since the beginning of the day, while the Swiss franc is stable and stronger against the euro.
It could easily happen that we see a further pullback and the formation of this week’s new low. This would confirm the bearish trend; the potential lower targets are 0.94100 and 0.94000 levels.
Additional support in the EMA200 moving average is in the zone around the 0.93900 level. We need a positive consolidation and a return above the 0.94400 level for a bullish option. With such a move, we would return to the previous bullish consolidation and could continue with growth. Potential higher targets are 0.94500 and 0.94600 levels.
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