Weekly FX Technical Analysis - 7th April 2026

FX markets remain range-bound but are approaching key technical inflection points.

GBP/USD continues to hold above 1.32 support, EUR/USD is attempting to stabilise above 1.15, while EUR/GBP is pushing toward the upper end of its range. Meanwhile, USD/JPY remains just below the critical 160 resistance level.

This week’s charts highlight where potential breakouts could emerge as we move further into April.

GBP/USD

GBP/USD continues to consolidate near the lower end of its broader range, currently trading around 1.3270, after failing to sustain momentum above the 1.34–1.35 resistance zone. The pair remains capped by descending trendline resistance, with price action continuing to form lower highs.

The recent bounce from the 1.3150–1.3200 region suggests this remains a key support zone for now, though upside momentum remains limited. Bollinger Bands are relatively neutral, while RSI is holding in the mid-40s, indicating a lack of strong directional conviction.

Potential Scenarios

• Bullish: A move back above 1.3350–1.3450 would shift momentum higher and open a move toward 1.3600, followed by 1.3800.

• Bearish: A break below 1.3200 would expose 1.3000, with further downside toward 1.2850.

Macro Backdrop to Consider

Sterling remains driven by UK growth expectations and Bank of England policy signals, while USD direction continues to be dictated by rate expectations.

GBP/USD: APRIL ‘25 - PRESENT

EUR/GBP

EUR/GBP has pushed higher within its range and is now trading closer to the upper boundary, currently around 0.8715–0.8720. The pair continues to respect the broader 0.8600–0.8800 range, with resistance near 0.8750–0.8800 remaining key.

Recent price action shows a modest recovery from the lower end of the range, with the pair now approaching trendline resistance. Bollinger Bands are slightly expanding, while RSI is moving toward the mid-to-high 50s, suggesting improving bullish momentum.

Potential Scenarios

• Bullish: A break above 0.8750 would open a move toward 0.8850.

• Bearish: Failure at resistance followed by a move back below 0.8650 would shift focus toward 0.8600 support.

Macro Backdrop to Consider

EUR/GBP continues to reflect relative central bank expectations between the ECB and BoE, with no clear divergence yet established.

EUR/GBP: APRIL ‘25 - PRESENT

EUR/USD

EUR/USD is attempting to stabilise after recent downside pressure, currently trading around 1.1570, having held above the key 1.1450–1.1500 support region.

The pair remains below the major 1.18–1.20 resistance zone, with price action still broadly range-bound. Bollinger Bands are beginning to narrow, suggesting a potential consolidation phase, while RSI is recovering toward the high-40s, indicating easing bearish momentum.

Potential Scenarios

• Bullish: A move above 1.1600–1.1675 would suggest a recovery and open a move toward 1.1800.

• Bearish: A break back below 1.1500 would reintroduce downside pressure toward 1.1400, followed by 1.1200.

  
  

Macro Backdrop to Consider

EUR/USD remains driven by Fed vs ECB policy expectations, with US data continuing to dominate directional bias.

EUR/USD: APRIL ‘25 - PRESENT

USD/JPY

USD/JPY continues to trade near the upper end of its long-term range, currently around 159.50–160.00, with the broader uptrend remaining intact. The pair is once again testing the key 160 resistance level, which continues to act as a significant barrier.

Momentum remains constructive, supported by higher lows, though price action is showing signs of consolidation just below resistance. Bollinger Bands remain elevated, while RSI is holding in the mid-to-high 50s, reflecting sustained bullish conditions.

Potential Scenarios

• Bullish: A sustained break above 160.50 would open a move toward 162.00–163.00.

• Bearish: A move below 158.00 would suggest a short-term pullback, exposing 155.00, followed by 152.50.

Macro Backdrop to Consider

Yield differentials remain the key driver, with USD/JPY highly sensitive to US Treasury yields and any potential Bank of Japan policy shifts.

USD/JPY: APRIL ‘25 - PRESENT

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As always, if you’d like to discuss these moves in more detail, or how they could impact your business or personal requirements, please don’t hesitate to get in touch.

info@k2-fx.com

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Disclaimer: The information in this publication is provided for general information purposes only. It does not constitute financial or investment advice, nor should it be relied upon as such. Readers should consider their own circumstances and seek independent advice where appropriate.