In the previous week, EURUSD moved in the range of 1.07500-1.09000. Ervo managed to hold on to gains since the beginning of the year and continued the bullish trend at the beginning of this week. During the Asian session, EURUSD climbs above 1.09000 for the first time in nine months. This morning’s high for the euro was at the 1.09288 level. We now have a slight pullback to the 1.09000 level and are looking for new support there.
For a bullish option, we need a positive consolidation and a move to the next level at 1.09500. Then we need to stay up there and, with a new impulse, start the further recovery. Our potential higher target is 1.10000 level. We need a negative consolidation and a drop to the 1.08500 level for a bearish option. This would bring us back to the previous consolidation, which could lead EURUSD to drop to the 1.08000 level. As a last resort, we would retest the 1.07500 level of support.
During the Asian session, GBPUSD climbed up to 1.24500 and thus confirmed the previous high from December. After that, we have a minor pullback, and GBPUSD is down to 1.23900. The next level we need to pay attention to is 1.23000 because if it sees a break below, it could signify a further fall in the pound. We need a negative consolidation and a drop below the 1.23000 level for a bearish option. In the continuation, the pair GBPUSD could go down to the 1.22000 level, the support from the beginning of last week.
For a bullish option, we need a new positive consolidation and a return above the 1.24000 level. After that, we would again be able to test this morning’s high at 1.24500. A break above would mean that we could continue the bullish option. A potential higher target is the 1.25000 level, the first next psychological barrier.
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