**Forex Technical Analysis of Major Pairs: October 21, 2025**
*Adapted and expanded from the original article by Imran Mukati at FXDailyReport.com*
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In the ever-evolving world of currency trading, technical analysis remains a critical tool for traders. It offers insights into price movements, market sentiment, and potential breakout or reversal points for the major forex pairs. This comprehensive analysis will discuss the latest price action, important technical levels, and upcoming scenarios for the most significant currency pairs including EUR/USD, GBP/USD, USD/JPY, and more, as of October 21, 2025. The expanded content also incorporates insights from additional reputable sources to give a well-rounded outlook for traders.
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## EUR/USD Technical Analysis
The EUR/USD pair continues to be a focal point for forex traders worldwide. Recent sessions have shown a mix of consolidation and attempts at directional moves, largely influenced by evolving monetary policy from both the European Central Bank (ECB) and the Federal Reserve.
### Recent Price Action
– The pair started the week with restrained price action, oscillating around the 1.0900 level.
– Resistance has been noted near 1.0950, while significant support lies around 1.0850.
– The 50-period simple moving average (SMA) on the H4 chart is acting as dynamic resistance; the 100-period SMA reinforces the current range.
### Key Technical Levels
– **Immediate Resistance:** 1.0950
– **Secondary Resistance:** 1.1000
– **Immediate Support:** 1.0850
– **Key Support Zone:** 1.0820 to 1.0800
### Short-Term Outlook
– The price remains within a horizontal channel. Bullish momentum would require a close above 1.0950, targeting 1.1000 and then 1.1050.
– If sellers gather strength, a move beneath 1.0850 could open the way for a retest of the 1.0800 handle.
– Technical oscillators such as RSI are hovering near the neutral 50 mark, reflecting the prevailing indecision.
### Macro Factors
– ECB policymakers have recently underscored the persistence of inflation, which could see rates stay higher for longer.
– The Fed’s rhetoric has emphasized data dependency with a bias for maintaining higher rates should inflation persist above target.
– Eurozone PMI releases and US housing market data are expected to influence volatility this week.
*Source: FXDailyReport.com, Investing.com, DailyFX*
## GBP/USD Technical Analysis
Sterling’s pairing with the US Dollar is experiencing cautious trading, as market participants weigh prospects for Bank of England policy versus US dynamics.
### Recent Price Action
– GBP/USD is trading in a tight corridor, ranging between 1.2650 and 1.2750 over recent sessions.
– The pair briefly tested 1.2770 last week before pulling back.
### Key Technical
Read more on AUD/USD trading.