EURUSD and GBPUSD: The second part of the week brings recovery

• On Wednesday, October 23, EURUSD retreated to 1.07612 to a new weekly low
• On Wednesday evening, 23 October, GBPUSD fell to a weekly low of 1.29074

EURUSD chart analysis

On Wednesday, October 23, EURUSD retreated to 1.07612 to a new weekly low. The previous time the pair was at that level was in early July. After getting new support, EURUSD started a bullish consolidation, and on Thursday, we returned above the 1.08000 level. During this morning’s Asian session, 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 open level. We need a stronger impulse to 1.08400 to have room for consolidation above the daily open price. Potential higher targets are 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 the pressure on the pair to continue with the retreat increases. Potential lower targets are 1.08100 and 1.08000 levels.

GBPUSD chart analysis

On Wednesday evening, 23 October, GBPUSD fell to a weekly low of 1.29074. The next day, on Thursday, after a short consolidation, the pair started a bullish recovery to 1.29880 levels. During this morning’s Asian session, the pound made a slight bearish move to the 1.29600 support level. We have additional support in the EMA 50 moving average at this level. Now we see a new bullish consolidation from there and expect a break of yesterday’s high.

Potential higher targets are 1.30000 and 1.30200 levels. At 1.30000, we will have additional resistance in the EMA 200 moving average. For a bearish option, GBPUSD needs to pull back to the 1.29600 support level. This time, we are looking 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. Potential lower targets are 1.29400 and 1.29200 levels.

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