EURGBP and EURCHF: EURGBP rose to 0.84990 this morning

• A strong bullish trend for EURGBP continues for the third week in a row. 
• Last week EURCHF managed to consolidate above the EMA200 moving average and 0.95600.

EURGBP chart analysis

A strong bullish trend for EURGBP continues for the third week in a row. Last night we saw a bullish gap at the opening of the Asian session from 0.84722 to 0.84870. During the Asian session, the movement took place in the 0.84870-0.84990 range. Now, the chances of us seeing a pullback and closing this morning’s gap have increased.

Potential lower targets are 0.84800 and 0.84700 levels. In the 0.84700 zone, we will test the EMA50 moving average and the weekly open price, while the EMA200 is around 0.84600. We need a positive consolidation and a move back up to 0.84990 for a bullish option. With a new test of that level, the chances of a move above to a new weekly high increase. Potential higher targets are 0.85000 and 0.85100 levels.

 

EURCHF chart analysis

Last week EURCHF managed to consolidate above the EMA200 moving average and 0.95600. With the support of the moving average, the pair makes a bullish consolidation, and by the end of the week, it has risen to the 0.96400 level. At the start of this morning’s Asian session, we saw a bullish gap up to the 0.86480 level. After that, we continued with bullish consolidation up to 0.96949.

If today’s consolidation continues, we can expect a new weekly high to form. Potential higher targets are 0.97000 and 0.97200 levels. We need a negative consolidation and pullback to the 0.96200 level for a bearish option. Thus, we go below the weekly open price and the EMA50 moving average. It will only increase the bearish pressure, forcing the pair into further retreat. Potential lower targets are 0.96000 and 0.95800 levels.