Forex Technicals: Sterling and Euro Capitalize on Dollar Weakness

While the US Dollar struggles with political headwinds, major European currencies are breaking key technical resistance levels, supported by unexpectedly resilient domestic economic data.

GBP/USD: Data-Driven Breakout

The British Pound (GBP) has surged above 1.3650, reaching its highest level since September 2025.

• Catalyst: The move was ignited by stronger-than-expected UK Retail Sales and Purchasing Managers' Index (PMI) figures, dampening fears of an immediate UK recession.
• Outlook: The pair is now trading in positive territory, with bulls eyeing the 1.3700 handle if the US Dollar Index continues its descent.

EUR/USD: Testing Multi-Year Highs

The Single Currency has jumped 0.36% to trade near 1.1920, a level not seen in nearly four years. The Euro is benefiting from a rotation of capital out of US assets (as evidenced by the Nordic pension fund sales) and into Eurozone equivalents.

• Wait and See: Traders are exercising some caution ahead of pending ECB speeches and the upcoming Federal Reserve announcement, but the technical momentum remains decidedly bullish as long as the pair holds above the 1.1850 support zone.