- On Friday, the euro rose against the British pound to the level of 0.85864.
- EURCHF rose to 0.98486 levels on Thursday, a new 10-month high.
EURGBP chart analysis
On Friday, the euro rose against the British pound to the level of 0.85864. We made a weekly high there, and today, we look to pull back from there. During the Asian trading session, we saw that the pair is under some pressure and heading lower. Pressure is located at the support level of 0.85750 with a move below the EMA50. This would put more pressure on the euro to fall further. Possible lower targets are 0.85700 and 0.85650 levels.
Additional support for EUR/GBP is the EMA200 in the area around 0.85650 levels. If we can get back and hold above the 0.85800 level, we will largely relieve the downward pressure. The chances of further recovery to the upside will increase. Possible higher targets are 0.85850 and 0.85900 levels.
Chart analysis of the euro against the Swiss franc
EURCHF rose to 0.98486 levels on Thursday, a new 10-month high. We stayed above that for a short while, followed by a pullback to support at the 0.97600 level. On Friday, we had difficulty staying above this support level; Additional support was the EMA200 moving average. During the Asian trading session, the pair continued its previous bullish consolidation, surpassing Friday's high and rising to a new weekly high at 0.98120.
We expect to see a continuation of the upside and the start of further recovery. Possible higher targets are 0.98200 and 0.98300 levels. We need negative consolidation and a pullback to 0.97600 for a bearish option. Below, we test the EMA200 moving average. A drop below this level will only increase downward pressure on EURCHF, after which we expect a further decline to a new support level. Possible lower targets are 0.97500 and 0.97400 levels.
