EURGBP and EURCHF: The euro under pressure from the pound
- On Friday, EURGBP rose to the 0.85864 level.
- EURCHF rose to 0.98486 levels on Thursday, a new 10-month high.
EURGBP chart analysis
On Friday, EURGBP rose to the 0.85864 level. We formed a weekly high there, and today, we are looking at a pullback from there. During the Asian trading session, we saw that the pair is under some pressure and is trending down. The pressure is on the 0.85750 support level with a move below the EMA50 moving average. This only increases the pressure on the euro to slide even lower. Potential lower targets are 0.85700 and 0.85650 levels.
Additional support for EURGBP is EMA200 in the zone around 0.85650 levels. If we manage to return and consolidate above the 0.85800 level, we will be significantly relieved of the bearish pressure. The chances of further recovery to the bullish side would increase. Potential higher targets are 0.85850 and 0.85900 levels.
EURCHF chart analysis
EURCHF rose to 0.98486 levels on Thursday, a new 10-month high. We stayed above for a short time, followed by a pullback to support at the 0.97600 level. On Friday, we struggled to stay above that support level; additional support was the EMA200 moving average. During the Asian trading session, the pair continued its previous bullish consolidation, skipping Friday’s high and climbing to a new weekly high at the 0.98120 level.
We expect to see a continuation on the bullish side and start a further recovery. Potential higher targets are 0.98200 and 0.98300 levels. We need a negative consolidation and pullback down to the 0.97600 level for a bearish option. Below, we test the EMA200 moving average. A fall below it will only increase the bearish pressure on EURCHF, and after that, we expect a further decline to a new support level. Potential lower targets are 0.97500 and 0.97400 levels.
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