GBP/USD Technical Analysis

The British pound is a little bit different in the sense that it continues to try to rally, but it can’t quite hang on to gains. The 1.34 level seems to be a significant barrier. If we can get above there, then it opens up the door to the 1.36 level, although I don’t think it’s a clean and easy move. If we pull back, then the 1.32 area and the 1.3250 area both offer support.

While keeping in mind that the Bank of England is expected to cut rates this month, it will probably have more to do with the press conference in the United States and what they say, mainly because the interest rate differential will essentially be the same at the end of the month and of course markets will be looking forward to try to figure out which one strengthens or weakens.

EUR/GBP Technical Analysis

The euro initially fell against the British pound but has recovered a bit as we just hang around this 50-day EMA. The 0.8750 level is an area that had previously been resistance, so it makes a certain amount of sense that it offers support. That being said, this is a market that had reached a major resistance barrier on longer-term charts and now has pulled back. If you squint, you can make out some type of complex head and shoulders, but really, at this point, I think we’re just kind of waiting around for some type of external news, probably the Bank of England and its statement at its interest rate decision later this month.

That could, in fact, strengthen the euro, or perhaps the Bank of England sounds a little bit more standoffish and maybe a little hesitant to go into a full rate-cutting cycle. And that could turn this pair right back around. The next couple of days are probably pretty choppy, though.

For a look at all of today’s economic events, check out our economic calendar.

Created on December 09, 2025

EUR/USD Analysis Summary Today

• Overall Trend: : Neutral.
• Support Levels for EUR/USD Today: 1.1590 – 1.1520 – 1.1470.
• Resistance Levels for EUR/USD Today: : 11.1680 – 1.1760 – 1.1820.

EUR/USD Trading Signals:

• Buy EUR/USD from the support level of 1.1555 with a target of 1.1800 and a stop-loss at 1.1490.
• Sell EUR/USD from the resistance level of 1.1730 with a target of 1.1500 and a stop-loss at 1.1800.

Technical Analysis of EUR/USD Today:

As observed in recent currency price movements, the EUR/USD pair continues to trade within a clear ascending channel. The price recently pulled back from its highs near the psychological barrier of 1.1700 to test support at the channel’s bottom. The EUR/USD price is currently stabilizing around 1.1653, suggesting the potential for another rally if the channel structure holds firm.

Simultaneously, Fibonacci extension levels applied to the recent movement show potential upward targets if the bullish trend resumes. The 0.00% level at 1.1628 represents the base of the current swing, while the 0.382 extension sits at 1.1678. Upward targets include the 0.5 extension at 1.1693, the 0.618 level at 1.1708, and the 0.764 extension at 1.1727. The ultimate target is the 1.0 extension around 1.1757 if the bullish momentum accelerates.

The 100-day Simple Moving Average (SMA) is situated above the 200-day SMA, confirming that the current stronger path is upward, or that the rally is more likely to gain momentum rather than reverse. Both moving averages are sloping upward and lie below the current price action, indicating they may form dynamic support for any further pullbacks. Additionally, the Stochastic oscillator is rising from the oversold area, suggesting buyers are beginning to regain control after the recent correction. The oscillator has room to rise before reaching an overbought state, meaning bullish momentum may increase in the near term.

The Relative Strength Index (RSI) is also turning bullish from the lower half of its range, reflecting renewed buying interest. The oscillator has ample room to rise, suggesting that the EUR/USD pair may continue its upward trajectory if channel support holds and buyers remain committed to pushing prices towards the Fibonacci extension targets.

Factors Influencing the EUR/USD Pair

According to Forex currency trading experts, the EUR/USD pair may be affected by the upcoming FOMC statement, where the Federal Reserve is widely expected to cut interest rates but may signal a more cautious outlook toward neutrality in 2026. Consequently, more hawkish comments from Fed Chair Powell could cause the US Dollar to rise, but it should also be noted that his term is nearing its end.

Prior to that, the Euro/Dollar will react today to the announcement of German Trade Balance figures at 09:00 AM Egypt time, followed by the more important release of the US ADP Non-Farm Employment Change and the JOLTS Job Openings reading at 17:00 PM Egypt time. Euro trading was already influenced by signals from European Central Bank officials, as ECB board member Schnabel stated that she was comfortable with market bets that the ECB’s next move might be an interest rate hike, noting that the risks to both growth and inflation are now tilted to the upside. She also suggested that the updated economic projections in December might be revised higher.

Overall, her comments, coupled with the resilience of economic activity and inflation nearing the target level, reinforced expectations that the ECB would keep interest rates unchanged until 2026.

Trading Advice:

As predicted, the EUR/USD pair will remain within a narrow range with no clear direction until the market reacts to the US Federal Reserve’s announcement tomorrow and any signals regarding its future policies until Powell’s term ends. Be cautious and don’t rush into anything.

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Copper price ended yesterday’s trading by providing new closure near $5.3200 level, taking advantage of stochastic positivity by providing chances for resuming the bullish attack that depends on several factors, one of them is the stability within the bullish channel levels besides forming extra support at $5.1300.

Therefore, we keep the bullish scenario, waiting for reaching %161.8 Fibonacci extension level at $5.5000, and surpassing it will open the way for achieving extra gains in the upcoming period.

The expected trading range for today is between $5.2500 and $5.5000

Trend forecast: Bullish

– Written by


Tim Boyer

STORY LINK Pound Sterling to Dollar Forecast: GBP Consolidation

The Pound to Dollar exchange rate (GBP/USD) consolidated above 1.33 after touching five-week highs, with traders now squarely focused on Wednesday’s Fed decision.

Markets expect a cut to 3.75%, though officials are likely to temper hopes for rapid follow-up easing.

GBPUSD’s path will hinge on Powell’s guidance and whether hawkish messaging offers the dollar a short-term lift.

GBP/USD Forecasts: Consolidation Below 5-Week Highs

After hitting 5-week highs around 1.3380, the Pound to Dollar (GBP/USD) exchange rate has consolidated above 1.3300.

The Pound has been subdued and the FTSE 100 index has drifted lower while markets are positioning for this week’s US interest rate decision.

There are no major UK data releases until Friday, but testimony by Bank of England officials to the Treasury Select Committee will be potentially important on Tuesday.

UoB still expects GBP/USD gains to 1.3410 and added; “only a breach of 1.3265 would indicate that GBP has moved into a range-trading phase.”

The Federal Reserve will announce its latest policy decision this Wednesday with the Bank of England decision the following week.

There are strong expectations that the Fed will decide to cut rates again to 3.75% with traders pricing in close to a 90% chance of a move.

Scotiabank looked at the underlying issues; “The Fed is widely expected to cut rates this week… and give markets a little more insight into how a deeply divided policy-making body expects the key rate changes to unfold in the year ahead via updated dots and economic forecasts.”

Comments from Chair Powell will be important and markets will also watch the updated interest rate forecasts from individual committee members.

According to BNY Mellon’s head of markets macro strategy Bob Savage; “We expect to see some dissents, potentially from both hawkish and dovish members.”

RBC expects the doves will win out; “With some softer data during the blackout, we doubt the hawks will put up a major fight.”

MUFG commented; “To push through a rate cut, Fed leadership may need to pair it with more hawkish guidance. We expect the updated communication to signal that the pace of rate cuts will likely slow next year, while emphasizing that the path remains highly data-dependent.”

It added; “More hawkish guidance could provide support for the US dollar and further delay expectations for another cut early next year.”

According to ING; “The Fed could be a positive event risk for the dollar in that it seems hard for the Fed to validate the 90bp of easing priced into Fed Funds futures by early 2027. However, the potential formal nomination of Kevin Hassett as Fed Chair over the coming months and the seasonal factors keeping the dollar weak into year-end should limit the dollar’s upside.”

Danske Bank commented on the press conference; “We expect Powell to verbally push back against continuation of sequential rate cuts in early 2026. Updated dots will likely signal a range of views for 2026 rates outlook, but we expect median long-range dot to remain at 3.00-3.25%.”

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TAGS: Pound Dollar Forecasts

Copper price ended yesterday’s trading by providing new closure near $5.3200 level, taking advantage of stochastic positivity by providing chances for resuming the bullish attack that depends on several factors, one of them is the stability within the bullish channel levels besides forming extra support at $5.1300.

Therefore, we keep the bullish scenario, waiting for reaching %161.8 Fibonacci extension level at $5.5000, and surpassing it will open the way for achieving extra gains in the upcoming period.

The expected trading range for today is between $5.2500 and $5.5000

Trend forecast: Bullish

Created on December 09, 2025

• The British Pound continues to climb against the Japanese Yen as persistent yen weakness and wide rate differentials drive the trend.
• Pullbacks remain shallow and carry incentives to support buyers as long as global risk conditions stay stable.

The British Pound has rallied a bit during the trading session on Monday, breaking above the 207 Yen level, and in fact is looking like it’s trying to get to the 208 Yen level. This is a pair that is focusing, I believe, mainly on the Yen because, quite frankly, the Bank of England is likely to cut rates this month.

But at the same time, the Bank of Japan is so stuck in its loose monetary policy that even if it did raise rates, it wouldn’t be enough to make the difference up. Global liquidity requires cheap funding out of Japan, and I think that will continue to be the mainstay of the asset bubbles that everybody enjoys.

Pullbacks and Trend Considerations

Short-term pullbacks are buying opportunities, and I do believe that the 50-day EMA at the very least is your floor, and that is right around the 203.62 Yen level and rising. As long as we don’t get some type of major meltdown on a global stage, I expect the Japanese Yen to continue to weaken, but I don’t know that we won’t get the occasional pullback. You’ll just have to make sure that you have enough space for your stop loss to take advantage of these dips and, more importantly, hang on to the trend.

You get paid at the end of every day to hold this pair, and that’s something that I like. It helps soften the pullbacks, and of course, you also have to keep in mind that even if the Bank of England cuts rates, you can still drive a truck through the interest rate differential when it comes to these two currencies.

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Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.

GBP/USD Technical Analysis

The British pound looks like it is rolling over a little bit. And that’s not a huge surprise because we had that explosive move a couple of days back due to the budget. The question is, will that budget change the trajectory of the economy? The answer, of course, is no. And recently, the Bank of England came within a whisker of cutting the rate. So, I think the market is starting to focus on that again.

At this point, we’ll be watching 1.32 to see if we can break down below it. If we can, then that’s a very negative sign. If we bounce from there, then we could head back into the previous consolidation. And just like in the case of the euro, I think it’s the Federal Reserve that determines the next move.

EUR/GBP Technical Analysis

The euro rallied slightly during the trading session on Monday, but it’s hanging around the 50-day EMA. And I think this is an area that is going to continue to be somewhat noisy. All things being equal, I think we’re just killing time here. But if we were to break down below the 0.87 level, then I think the market really starts to drop. If we rally from here and clear the 0.875 level, then I think we go looking at the 0.8850 level again. That being said, this is a very choppy market. It always is choppy. So, I’m not looking for rapid or quick moves.

For a look at all of today’s economic events, check out our economic calendar.

– Written by


Ben Hughes

STORY LINK GBP to USD Forecast: Pound Sterling Drifts on Leadership Uncertainty, Fed Watch

The Pound to US Dollar exchange rate (GBP/USD) drifted on Monday, slipping back from last week’s six-week high as renewed political unrest in Westminster weighed on Sterling and traders shifted their focus to the Federal Reserve’s upcoming policy decision.

At the time of writing, GBP/USD was trading at $1.3316, largely unchanged on the session.

The Pound (GBP) struggled for traction on Monday as fresh political anxiety limited Sterling’s upside.

Reports surfaced that Labour Together — a prominent Labour thinktank — has been polling members on potential leadership alternatives. The survey reportedly includes Prime Minister Keir Starmer and eight senior Labour figures, fuelling speculation that a leadership challenge could emerge in May 2026 should Labour underperform in the local elections.

Political stability remains a critical currency driver, and renewed whispers of leadership turbulence added an unwelcome layer of uncertainty. With questions creeping back into the UK’s political outlook, traders were reluctant to push the Pound meaningfully higher.

The US Dollar (USD) held steady on Monday as investors adopted a cautious stance ahead of Wednesday’s Federal Reserve interest rate decision.

While markets still widely expect a rate cut, subtle pre-decision positioning helped to keep the Dollar supported. A modest rise in US Treasury yields also offered the ‘Greenback’ some protection, as traders pared back the most aggressive easing bets and reassessed how quickly the Fed might loosen policy.

This slight recalibration was enough to prevent further Dollar losses, leaving USD largely rangebound as markets await clearer direction from the central bank.

GBP/USD Exchange Rate Outlook: Pre-Fed Jobs Data to Shape USD Direction

Looking ahead, UK focus will fall on Bank of England (BoE) Governor Andrew Bailey’s speech on Tuesday. With the final interest rate decision of 2025 looming, investors will scrutinise his comments for any shift toward a more dovish tone. Signals that a rate cut is likely next week — or that further easing could follow — may weigh heavily on Sterling.

For the US Dollar, incoming labour market data could be decisive ahead of the Fed meeting.

The ADP weekly employment change reading may pressure USD if it indicates another decline in staffing levels. Meanwhile, the long-delayed JOLTS job openings reports for September and October are finally due. Continued cooling in labour demand would reinforce evidence of slack in the jobs market, potentially dragging the Dollar lower as traders reconsider the Fed’s appetite for deeper rate cuts.

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TAGS: Pound Dollar Forecasts