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The EURUSD and GBPUSD pairs have shown significant upward momentum in the early U.S. session, reversing earlier losses and testing key technical levels. EURUSD erased its downside and approached neutrality, driven by a failed breakdown below the 100-hour moving average at 1.14177. GBPUSD gained 0.23%, nearing 1.3382, and is now approaching a cluster of critical resistance levels, including the 200-day moving average and Fibonacci retracement levels. Technical analysis highlights these levels as potential hurdles for further gains.
For traders, the shift in momentum signals a short-term bullish bias, particularly for GBPUSD. Breaks above key resistance could trigger follow-through buying, while failures might lead to consolidation. The focus remains on whether buyers can sustain gains beyond these technical barriers, which could influence broader EUR/USD and GBP/USD trends.
The next critical phase involves monitoring GBPUSD’s ability to surpass 1.34055 (100-day MA) and EURUSD’s stability above the 100-hour MA. Traders should watch for volume confirmation and potential follow-through from institutional buyers, which could validate the bullish setup.
