Two main European currencies, the Euro and the British Pound, reacted very differently to this week’s tariff-driven turmoil. The Euro emerged as one of the strongest performers, while the British Pound came under significant pressure. Unsurprisingly, the EUR/GBP pair has been climbing higher as a result.
Looking at the broader technical picture, this pair has been trading in a sideways range since August 2024, locked between two key horizontal levels marked with orange lines. The upper orange line, around 0.846, has acted as a particularly accurate resistance for months. After the recent rally, the price is now testing this critical area once again.
There is clearly buying pressure building here, and a breakout looks increasingly likely. However, given the sharp rally leading up to this point, the orange resistance zone also presents a logical area for profit-taking — a place to pause and potentially reset.
If buyers manage to close the day above the orange resistance, it would confirm a buy signal. That said, the immediate upside appears somewhat limited, with the purple downtrend line serving as the next significant target just above.
Conversely, if the price fails to break the resistance and bounces lower, that would generate a sell signal. In this case, the first target would be the lower purple trendline, with the possibility of a deeper move toward the lower orange horizontal support — the December 2024 lows.