EURUSD and GBPUSD: The Euro fell to 1.09180 this morning

During the Asian trading session, EURUSD was trying to climb up to the 1.10000 level. 
During the Asian trading session, GBPUSD held above the 1.26200 level. 

EURUSD chart analysis

During the Asian trading session, EURUSD was trying to climb up to the 1.10000 level. We only managed to get close to that level, but not to stay up there. A pullback to the 1.09750 level soon followed. At the beginning of the EU session, the euro continued to retreat, and the bearish impulse brought us down to the 1.09182 level.

We are currently consolidating around the 1.09300 level and watching how the EURUSD will behave at this level. I need a positive consolidation and a move above the 1.09400 level for a bullish option. Then we have to stay up there so that we can start with a new impulse to continue the recovery. Potential higher targets are 1.09500 and 1.09750 levels.

If the current negative consolidation continues, EURUSD could easily slip to the 1.09000 support level. Potential lower levels could be 1.08900 and 1.08800 levels.

GBPUSD chart analysis

During the Asian trading session, GBPUSD held above the 1.26200 level. As the EU session began, the pound started to retreat and fell below the 1.26000 level. The decline stopped at the 1.25660 level, and we are holding above it for now. Essential for this pair is the BoE report on the future interest rate.

Forecasts are that BoE could raise the interest rate from 4.25% to 4.50%. This would impact the GBPUSD pair’s increased volatility as well as all other currencies that are correlated with the pound. We could again see a return above the 1.26000 level and a test of the previous consolidation around 1.26200 from earlier in the day.

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