EURUSD and GBPUSD testing last week’s highs

<div><img width="736" height="491" src="https://6ztkp25f.tinifycdn.com/wp-content/uploads/2019/05/Forex-Markets-Pound-Slides-on-Brexit-Fears-Finance-Brokerage.jpg" class="attachment-post-thumbnail size-post-thumbnail wp-post-image" alt="GBP/USD" loading="lazy" srcset="https://6ztkp25f.tinifycdn.com/wp-content/uploads/2019/05/Forex-Markets-Pound-Slides-on-Brexit-Fears-Finance-Brokerage.jpg 736w, https://6ztkp25f.tinifycdn.com/wp-content/uploads/2019/05/Forex-Markets-Pound-Slides-on-Brexit-Fears-Finance-Brokerage-300×200.jpg 300w, https://6ztkp25f.tinifycdn.com/wp-content/uploads/2019/05/Forex-Markets-Pound-Slides-on-Brexit-Fears-Finance-Brokerage-450×300.jpg 450w" sizes="(max-width: 736px) 100vw, 736px" /></div><h1>EURUSD and GBPUSD testing last week’s highs</h1>
<h2>EURUSD chart analysis</h2>
<p>During the Asian session, the euro withdrew against the dollar. The ECB kept its monetary policy stance unchanged last week, as expected. However, President <a href="https://www.financebrokerage.com/lagarde-assures-that-2021-will-be-the-year-of-eu-recovery/">Christine Lagarde</a> refrained from explicitly ruling out the possibility of raising interest rates this year. That “silence” provided a speculative boost to the euro. On the other hand, the US currency has been consolidating since Friday after regular monthly (NFP) data from the US labor market came as a positive surprise. Namely, the number of newly created jobs increased by 467,000 in January (expectations stood at around 150,000), but the unemployment rate rose to 4% from 3.9%. The euro is now trading at $ 1.14222, weakening the common European currency by 0.23% since trading closed on Friday.</p>
<p><strong>Bullish scenario:</strong></p>
<ul>
<li>We need a new positive consolidation and a new test of last week’s high at 1.14835.</li>
<li>Twice this year, we have tried to make a break above 1.14850 but without success so far, and we hope the pair will succeed in the third attempt.</li>
<li>We have a solid resistance zone in the range of 1.14850-1.15250, and here the EURUSD pair will be more vulnerable.</li>
<li>Break above will quickly push us up to 1.16000, and maybe even to 1.17000 high from October.</li>
</ul>
<p><strong>Bearish scenario:</strong></p>
<ul>
<li>We need a continuation of the current negative consolidation and a retreat towards 1.14000.</li>
<li>Potential additional support for this level is the MA20 moving average, while the MA200 is in the zone around 1.13500, and the MA50 is at 1.13000.</li>
<li>A break below 1.14000 could drop us to 1.13000, the place where the last climb began after the ECB meeting last Thursday.</li>
<li>Our maximum pullback is up to 1.12000 and this year’s minimum zone.</li>
</ul>
<h2><img loading="lazy" class="aligncenter size-full wp-image-135449" src="https://6ztkp25f.tinifycdn.com/wp-content/uploads/2022/02/eurusd-20220207.jpg" alt="eurusd-20220207" width="1200" height="491" srcset="https://6ztkp25f.tinifycdn.com/wp-content/uploads/2022/02/eurusd-20220207.jpg 1200w, https://6ztkp25f.tinifycdn.com/wp-content/uploads/2022/02/eurusd-20220207-300×123.jpg 300w, https://6ztkp25f.tinifycdn.com/wp-content/uploads/2022/02/eurusd-20220207-1024×419.jpg 1024w, https://6ztkp25f.tinifycdn.com/wp-content/uploads/2022/02/eurusd-20220207-768×314.jpg 768w" sizes="(max-width: 1200px) 100vw, 1200px" /></h2>
<h2>GBPUSD chart analysis</h2>
<p>During the Asian session, the British pound consolidated after a significant withdrawal against the dollar on Friday. The Bank of England raised the interest rate on the island to 0.5% but sent a very cautious forecast on the prospects of the British economy. This gave the pound short-lived strength. However, other post-Brexit problems and political disagreements on the island continued to put pressure on the island’s currency. Now, the pound is trading for $ 1.3500, which is weakening the British currency by 0.19% since the close of trading on Friday.</p>
<p><strong>Bullish scenario:</strong></p>
<ul>
<li>Friday was very bearish for the pound, and Monday continued where we left off last week.</li>
<li>We need a new positive consolidation that would first climb us above the MA20 moving average.</li>
<li>After that, we can say that the GBPUSD pair will try again to test last week’s high at 1.36270.</li>
<li>Moving above 1.36000 would give us the opportunity to try to continue further towards January high at 1.37500.</li>
<li>An additional resistance at that level is the MA200 moving average.</li>
<li>Since August last year, GBPUSD has failed to stay above the MA200 moving average.</li>
</ul>
<p><strong>Bearish scenario:</strong></p>
<ul>
<li>We need to continue the current negative consolidation and withdraw to support at 1.34000.</li>
<li>Additional support at that level is our MA50 moving average.</li>
<li>The break below opens up empty space to the December support zone around 1.32000.</li>
</ul>
<h2><img loading="lazy" class="aligncenter size-full wp-image-135450" src="https://6ztkp25f.tinifycdn.com/wp-content/uploads/2022/02/gbpusd-20220207.jpg" alt="" width="1200" height="492" srcset="https://6ztkp25f.tinifycdn.com/wp-content/uploads/2022/02/gbpusd-20220207.jpg 1200w, https://6ztkp25f.tinifycdn.com/wp-content/uploads/2022/02/gbpusd-20220207-300×123.jpg 300w, https://6ztkp25f.tinifycdn.com/wp-content/uploads/2022/02/gbpusd-20220207-1024×420.jpg 1024w, https://6ztkp25f.tinifycdn.com/wp-content/uploads/2022/02/gbpusd-20220207-768×315.jpg 768w" sizes="(max-width: 1200px) 100vw, 1200px" /></h2>
<h2>Market overview</h2>
<p>In December, German industrial production dropped unexpectedly due to a sharp decline in construction, Destatis data showed on Monday.</p>
<p>Industrial production fell 0.3 percent on a monthly basis, up from a revised 0.3 percent growth in November. This was the first drop in three months. On an annual basis, industrial production decreased by 4.1 percent. Economists’ forecast was a monthly increase of 0.4 percent.</p>
<p>In 2021 as a whole, production in the manufacturing sector was 3.0 percent higher than in 2020 but 5.5 percent lower than in the pre-crisis 2019.</p>
<p>The small drop in production in December was not as bad as it seems because it was mainly due to the decline in construction activity, but 2021 was still a terrible year for German manufacturers because supply chain problems kept vehicle production at a low level.</p>
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