- The previous week was very bearish for the EUR/GBP, falling from 0.85650 to 0.85074.
- During the Asian trading session, the EURCHF fell below the 0.96000 level.
EURGBP chart analysis
The previous week was very bearish for the EUR/GBP, falling from 0.85650 to 0.85074. After forming a bottom on Friday, the pair was able to hold above it and start the recovery. During the Asian session, we rose to 0.85260 levels but are back to the previous consolidation area around 0.85150. We now expect new support here and the start of a new bullish consolidation with the aim of forming a new daily high.
Possible higher targets are 0.85300 and 0.85400 levels. For the bearish option, we need a negative consolidation and a drop below the 0.85100 level. With this move, we are close to testing the low recorded last week. A new visit to this level could easily push EUR/GBP lower and form a new low. Possible lower targets are 0.85000 and 0.84900 levels.
Chart analysis of the euro against the Swiss franc
During the Asian trading session, the EURCHF fell below the 0.96000 level. The pair fell back to the 0.95800 level and is testing the EMA200 moving average support there. We are holding higher for now, but we need to get back to 0.96000 if we are to continue the bullish consolidation we saw last week. By moving above, we also exceed the weekly opening price and have the opportunity for further growth.
Possible higher targets are 0.96100 and 0.96200 levels. We need to break below the EMA200 level and the 0.95800 level to get a bearish option. Thus, we form a new daily low and get support for the current bearish momentum. After that, the euro is forced to slide to a new support level, and possible lower targets are the 0.95700 and 0.95600 levels.
