**Pairs in Focus: EUR/USD, GBP/USD, Gold, GBP/JPY**
*Original analysis by Haresh Menghani | Credit: Forex Factory*
**Forex markets remain vibrant with key currency pairs and gold capturing trader attention. As central banks’ decisions, geopolitical tensions, and macroeconomic data drive volatility, technical and fundamental analysis for key assets such as EUR/USD, GBP/USD, Gold, and GBP/JPY are essential for traders seeking to uncover opportunities. This in-depth examination outlines current market dynamics, chart patterns, and main support and resistance levels, enabling informed trading decisions.**
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## EUR/USD: Setting the Tone in FX
**Overview**
The EUR/USD has exhibited range-bound price behavior, with a cautious mood dominating as traders await meaningful Eurozone and US data releases. Subdued movement follows recent economic news, while US Treasury yields and Federal Reserve expectations shape broader sentiment.
**Recent Price Action and Technicals**
– After reaching a 12-week high, EUR/USD has retraced slightly, trading below the key 1.0900 figure.
– The pair faces overhead technical resistance just above the 1.0900 handle.
– The pair enjoys moderate support around the 1.0850 region, aligning with short-term moving averages.
**Factors Influencing the Pair**
– **Federal Reserve Policy**: Dovish signals from recent Fed comments have supported the euro. Markets currently price in potential Fed rate cuts later in the year, reducing dollar appeal.
– **Eurozone Economic Data**: The euro’s advance is capped by mixed demand and uncertainties surrounding the region’s economic recovery and ECB monetary policy trajectory.
– **US Dollar Dynamics**: The greenback’s direction remains tied to US economic data, especially labor market strength and inflation reads.
**Technical Outlook**
– **Immediate resistance**: 1.0895 to 1.0915 (near-term highs and psychological zone)
– **Support zones**: 1.0850, then 1.0820 (recent swing low), with further downside risk toward 1.0780 if these levels are breached.
– **Momentum indicators**: Daily MACD shows flattening momentum, while RSI hovers near neutral, signaling indecision.
**What to Watch**
– Investors will closely monitor Eurozone industrial data and the next batch of US labor statistics.
– Breakout traders will look for moves above 1.0915 for bullish continuation, while breakdown below 1.0850 reopens the path toward last week’s lows.
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## GBP/USD: Bulls Attempt to Regain Control
**Overview**
Sterling has found renewed buying interest against the US dollar, buoyed by expectations of a resilient UK economy and speculation over the Bank of England’s (BoE) next steps. GBP/USD remains within a well-defined uptrend channel, although US-centric events have at times interrupted the pair’s momentum.
**Recent Price Action and Technicals**
– GBP/USD climbed above 1.2800 to test multi-week peaks, but momentum hesitated amid profit-taking and overarching greenback influence.
– The pair enjoys a supportive technical structure, with buyers eagerly defending pullbacks toward short-term moving averages.
**Fundamental Drivers**
– **BoE Policy Uncertainty**: Relative to its counterparts, the BoE is seen as less likely to embark on aggressive rate cuts, supporting the pound.
– **UK Economic Data**: Data depicting stable employment, wage growth, and improving business sentiment have bolstered GBP.
– **US Data Impact**: US economic prints will continue to inject volatility, as traders weigh transatlantic differences in central bank outlooks.
**Technical Outlook**
– **Resistance**: 1.2850 (recent rejection zone), followed by 1.2900 (psychological and measured move area).
– **Support**: 1.2780 (moving average confluence), then 1.2720 (swing support
Read more on GBP/USD trading.