EURUSD and GBPUSD: The Pound is under pressure at 1.29000
- During this morning’s Asian trading session, EURUSD successfully held above the 1.08800 level.
- On Friday, GBPUSD retreated to support at the 1.29000 level.
EURUSD chart analysis
During this morning’s Asian trading session, EURUSD successfully held above the 1.08800 level. The EMA 200 moving average provided additional support from Friday in that zone. Although we are above the support, the pair remains in the pressure zone and could easily move below to the bearish side. With this, we move to a new weekly low and confirm that the euro has no strength to recover.
Potential lower targets are the 1.08700 and 1.08600 levels. This week is the Eurozone meeting, and we expect increased pressure on the European currency. For a bullish option, we need positive consolidation and growth above the 1.09000 level. By moving above that level, we also get support from the EMA 50 moving average, which will strengthen optimism for a continuation on the bullish side. Potential higher targets are the 1.09100 and 1.09200 levels.
GBPUSD chart analysis
On Friday, GBPUSD retreated to support at the 1.29000 level. During this morning’s Asian trading session, the pair managed to hold above this level but is under pressure from the EMA 200 moving average at the 1.29200 level. Monday has just begun, and for now, the market’s volatility is reduced. With momentum below, the pair could easily form a new low below 1.29000.
Potential lower targets are 1.28900 and 1.28800 levels. By descending to these levels, we would form new ten-day lows. We need a positive consolidation above the EMA 200 and EMA 50 moving averages for a bullish option. By jumping above 1.29400, we would pass above both moving averages, which would positively affect further continuation to the bullish side. After that, we expect an increase in bullish momentum. Potential higher targets are 1.29600 and 1.29800 levels.
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