- On Wednesday, October 23, EURUSD retreated to 1.07612, hitting a new weekly low
- On Wednesday afternoon, October 23, GBPUSD fell to a weekly low of 1.29074.
EURUSD Chart Analysis
On Wednesday, October 23, EURUSD retreated to 1.07612, hitting a new weekly low. The last time the pair was at that level was in early July. After gaining new support, EURUSD started a bullish consolidation and on Thursday we broke above the 1.08000 level again. During the Asian session this morning, the pair came under pressure again, returning from 1.08280 to 1.08140. After that, the euro gains strength in the EU session and jumps to 1.08375 levels.
The return to the bullish side still looks very weak as we are back below the daily opening level. We need stronger momentum to 1.08400 to have room for consolidation above the daily opening price. The possible highest targets are the 1.08500 and 1.08600 levels. For a bearish option, EURUSD would first have to break the previous support level of 1.08140. With that step, we form a new daily low and pressure increases on the pair to continue the pullback. The lowest possible targets are the 1.08100 and 1.08000 levels.
GBPUSD Chart Analysis
On Wednesday afternoon, October 23, GBPUSD fell to a weekly low of 1.29074. The next day, Thursday, after a brief consolidation, the pair began a bullish recovery to levels of 1.29880. During the Asian session this morning, the pound made a slight bearish move towards the 1.29600 support level. We have additional support at the 50 EMA at this level. We now see a new bullish consolidation from there and expect a breakout of yesterday's high.
The highest possible targets are the 1.30000 and 1.30200 levels. At 1.30000, we will have additional resistance at the 200 EMA. For a bearish option, GBPUSD needs to pull back to the support level of 1.29600. This time we look for a break below and the formation of a new daily low. This confirms the strengthening of the bearish momentum and the pair will have to continue its retreat. The lowest possible targets are the 1.29400 and 1.29200 levels.
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