Yesterday, both EURUSD and GBPUSD dropped significantly. The EURUSD fell deeper, it finished the day below the S1 support level and the EMA 200. The GBPUSD finished the session slightly below the EMA 77. However, during today’s Asian trading session, both Forex pairs dropped even more. From the data front, the CB consumer confidence index will be published in the US. Anyway, let’s start the analysis:

EURUSD

The EURUSD dropped heavily yesterday. The price finished the day below the S1 support level and the EMA 200. What’s more, during today’s Asian trading session it tested the latest S1. However, after the start of the European trading session the price managed to bounce. If the buyers continue generating sufficient demand, the price might even reach the R1 resistance level today. But if they don’t, the price could drop below the S1 and 1.21.

EURUSD - 26.01.2021

GBPUSD

The GBPUSD showed mixed sentiment yesterday. First the price rose above 1.37. Then it dropped heavily, and in the end it finished the day below the EMA 77. However, during today’s Asian trading session the price fell much deeper, close to 1.36. But right after the start of the European trading session it also managed to bounce. If the buyers continue generating sufficient demand, the price might even reach the EMA 77. But if they don’t, the price could drop below 1.36.

GBPUSD - 26.01.2021