EURGBP and EURCHF: EURGBP climbs to a new weekly high

EURGBP chart analysis

During this morning’s Asian trading session, EURGBP climbed to a new weekly high of 0.86250. We currently have resistance at that level, making a pullback to the 0.86050 level. The price is now putting pressure on the daily open price, which could result in a break below to a new daily low. Additional support in that zone is the EMA 50 moving average. Failure to hold above will reinforce bearish momentum and trigger a stronger pullback.

Potential lower targets are 0.85800 and 0.85600 levels. The EMA 200 moving average is in the 0.85300 zone. For a bullish option, we need a positive consolidation and a return back to the 0.86200 level. We will retest the daily high there. Potential higher targets are 0.86400 and 0.86600.

EURCHF chart analysis

EURCHF rose to the 0.94700 level on Wednesday, forming a new weekly high. After its formation, the pair loses momentum and begins to pull back below the EMA 200 moving average. During this morning’s Asian trading session, the movement took place in the 0.93800-0.94150 range. In the EU session, there is a bearish impulse and a pullback to the 0.93600 weekly open price. For now, we are holding above, but we are still under bearish pressure.

We need a break above the EMA 50 moving average to release the pressure and initiate a new bullish consolidation. If we succeed in this, EURCHF could again test the 0.94500 level and the EMA 200 moving average. With the new support of the moving average, the chances of recovery to the bullish side increase. Potential higher targets are 0.94800 and 0.95000 levels.

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