**Pairs in Focus This Week: 8th to 13th February 2025**
*Based on content by Adam Lemon, DailyForex*
The upcoming trading week, spanning from February 8th to 13th, 2025, presents several compelling opportunities in the forex market as global macroeconomic events, central bank decisions, and ongoing geopolitical tensions continue to shape currency pair movements. This article comprehensively analyzes the major and minor forex pairs likely to be in focus, highlighting technical levels, sentiment drivers, and potential trading setups to help traders navigate the evolving landscape. The insights provided are based on the original analysis by Adam Lemon at DailyForex.
## Overview: Factors Impacting the Forex Market
Several key factors are steering the forex market this week:
– **Central Bank Monetary Policy:** Both expected and surprise decisions from leading central banks are influencing volatility and directional bias.
– **Economic Data Releases:** A packed calendar with inflation figures, employment data, and GDP releases are acting as significant catalysts.
– **Geopolitical Dynamics:** Events in Europe, the Middle East, and Asia are keeping traders wary, impacting risk sentiment and capital flows.
– **Technical Breakouts:** Several major currency pairs are testing or breaking key support and resistance levels, inviting tactical trading opportunities.
## EUR/USD: Consolidation or Continuation?
The euro versus US dollar pair continues to trade within a well-defined range as markets await clearer policy signals from both the European Central Bank (ECB) and US Federal Reserve.
### Key Observations:
– **Resistance Levels:** The 1.0900 and 1.1000 psychological areas are capping gains, with sellers consistently emerging on sharp rallies.
– **Support Levels:** Immediate support is at 1.0730, then at 1.0650, and finally the pivotal 1.0600 zone.
– **Market Sentiment:** Investors are divided between bets on the ECB maintaining a wait-and-see approach due to subdued inflation and the possibility of the US Fed delaying rate cuts as the US jobs market remains resilient.
**Trading Outlook:**
Watch for a decisive break above 1.1000 to open the path for bullish momentum, targeting 1.1100. A downside move below 1.0730 could accelerate selling toward 1.0600. Range trading strategies (buying dips and selling rallies) may continue to suit until a breakout occurs.
## GBP/USD: Can the Rally Sustain?
The pound sterling has benefited from surprisingly resilient UK economic data and diminishing fears of recession. The Bank of England’s hawkish tone at its last meeting added fuel to Sterling’s advance.
### Key Observations:
– **Resistance Levels:** 1.2800 and 1.3000 are formidable barriers; these levels have historically attracted profit-taking.
– **Support Levels:** Immediate support is at 1.2580, followed by 1.2500.
– **Market Drivers:** BoE rhetoric and UK inflation figures, scheduled for release this week, are primed to drive short-term sentiment.
**Trading Outlook:**
If GBP/USD holds above 1.2580, bulls will likely maintain control, eyeing a return to 1.2800. However, a poor inflation print or dovish surprise from the BoE could trigger a swift reversal back toward 1.2500.
## USD/JPY: Intervention Watch Intensifies
The Japanese yen remains weak against the US dollar, trading near multi-decade lows. However, speculation is rising about potential intervention from Japanese authorities if yen depreciation accelerates further.
### Key Observations:
– **Resistance Levels:** Immediate resistance is seen at 151.90, with a major barrier at 152.50.
– **Support Levels:** 149.80 remains short-term support, followed by 148.50.
– **Market Sentiment:** Markets remain wary of verbal intervention, and any surprise action from the Bank of Japan can cause sharp moves.
**Trading Outlook:**
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