**Pairs in Focus: 12th to 17th October 2025**
*Based on the original analysis by DailyForex.com*
The week from 12th to 17th October 2025 presents several critical opportunities and risks in the Forex market, with traders closely watching central bank moves, ongoing geopolitical tensions, and the latest economic data. Major currency pairs have shown notable volatility, influenced by both technical and fundamental drivers. Below, we examine the key pairs in focus for this week, outlining technical outlooks, support and resistance levels, and what traders should keep on their radar.
—
## EUR/USD: Range-Bound with Downside Risk
The euro-dollar pair continues to consolidate, reflecting indecision amid mixed signals from economic data and central banks. The European Central Bank remains dovish, signaling reluctance to tighten policy as growth prospects stall across the Eurozone. Meanwhile, the Federal Reserve’s hawkish tone and a solid US labor market provide fundamental support for the dollar.
### Technical Summary
– **Immediate support**: 1.0720, followed by 1.0660
– **Immediate resistance**: 1.0820, followed by 1.0895
– **Analysis**: The pair has been forming higher lows since mid-September but failed to break above the 1.0895 resistance multiple times. This has resulted in a compression triangle, with technical momentum indicators suggesting bearish pressure may resume if support levels break. The 200-period moving average is a key resistance cap.
### Trading Strategy
– **Short bias** if price closes below 1.0720, targeting 1.0660 and possibly 1.0600
– **Long opportunities** limited unless a decisive break above 1.0895 occurs
**Key event risk**: US CPI data and ECB monetary policy minutes could drive volatility. A surprise in core inflation may shift sentiment sharply in either direction.
—
## GBP/USD: Waiting for Direction amid BoE Uncertainty
The pound-dollar pair remains trapped in a broad sideways range as the market anticipates clear policy signals from the Bank of England. Persistent domestic inflation and subdued UK economic growth have put policymakers in a challenging position.
### Technical Summary
– **Immediate support**: 1.2300, then 1.2220
– **Immediate resistance**: 1.2475, followed by 1.2550
– **Analysis**: Price action is trading just above the 50-day moving average, suggesting ongoing indecision among traders. Momentum indicators are flat, reflecting a lack of conviction. A break below 1.2300 opens the door for further declines toward the lower end of the range.
### Trading Strategy
– **Watch for breakout**: Enter on clear daily candle close above 1.2550 (bullish) or below 1.2300 (bearish)
– **Range trading** between established support and resistance in the absence of a catalyst
**Key event risk**: UK employment and GDP data releases could trigger breakout conditions.
—
## USD/JPY: Bulls Maintain Control as Yield Divergence Persists
The dollar-yen continues to trend higher, underpinned by the wide interest rate differential between the US and Japan. The Bank of Japan maintains its ultra-loose monetary policy stance, while the Federal Reserve’s hawkish rhetoric remains unchanged despite some softening in global growth.
### Technical Summary
– **Immediate support**: 147.80, then 146.50
– **Immediate resistance**: 149.10, followed by key psychological level at 150.00
– **Analysis**: The pair set new multi-month highs above 149.00 last week, with the uptrend well established. Pullbacks have been shallow, and dips are being bought aggressively. RSI readings are nearing overbought territory but have not flashed reversal signals yet.
### Trading Strategy
– **Buy the dip** as long
Read more on GBP/USD trading.