The currency markets saw EUR/USD and GBP/USD making gains, while EUR/GBP retreated following discussions between the US and Russia and reports of increased European defense spending.
EUR/USD Struggles to Overcome Key Resistance
EUR/USD continues its attempt to break through the critical resistance zone between $1.0461 and $1.0533. A sustained move above this range is necessary to confirm a medium-term bullish reversal.
On the downside, minor support is observed near the 55-day simple moving average (SMA) at $1.0400, with additional support at the January 23 low of $1.0372. Should selling pressure intensify, the major support level remains between last week’s low of $1.0281 and the broader January-February range of $1.0224 to $1.0178.
EUR/GBP Extends Losses
EUR/GBP tested its late December low of £0.8264 on Wednesday morning before bouncing back.
Resistance may emerge at the early February low of £0.8292, followed by the February 10 low of £0.8310 and the 55-day SMA at £0.8328. Further resistance is seen at last week’s high of £0.8352.
A decisive break below £0.8264 would open the door for a decline toward the December trough at £0.8223.
GBP/USD Maintains Bullish Momentum
GBP/USD’s weekly close above the early February high of $1.2550 signals the formation of a medium-term bottom, with a potential upside target in the $1.3000 region.
The bullish outlook remains intact as long as last Tuesday’s low of $1.2333 holds as support. Additional minor support levels can be found at $1.2550 and the late January high of $1.2524, with further cushioning at the 55-day SMA at $1.2483.
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