Will the pound, which has fallen against the U.S. dollar, recover? All eyes are on its direction.

Will the pound, which has fallen against the U.S. dollar, recover? All eyes are on its direction.

05.02.2026

In the previous day's U.S. currency trading, the U.S. dollar rose against the euro.The EUR/USD pair fell from 1.1838 to 1.1790. On the hourly chart, the price has moved from above the 20-period moving average (MA) to below it. On the 4-hour chart, the price is rebounding after encountering resistance at the 20-MA, and on the daily chart, it is currently hovering on the verge of breaking below the 20-MA, which had previously served as support. Furthermore, as the price has continued to decline during today’s Asian session, we should remain vigilant for further weakness in the euro during the European session.

Among European currencies, the pound fell against the U.S. dollar ahead of today’s Bank of England policy rate announcement. The GBP/USD pair dropped from 1.3733 to 1.3642.On the hourly chart, the price has moved from above the 20-period moving average (MA) to below it. On the 4-hour chart, the price continues to decline just below the 75-period MA, and on the daily chart, it has already fallen to around the midpoint of last month’s gains. The price has broken below the 10-period MA, which had previously served as support, with a real body candle.

Today’s economic indicators include remarks by U.S. Federal Reserve Governor Cook at 8:30 a.m., Australia’s trade balance at 9:30 a.m., Germany’s manufacturing orders at 4:00 p.m., and France’sIndustrial Production and France’s Manufacturing Production Index, at 6:30 PM UK Construction PMI, at 7:00 PM Eurozone Retail Sales, at 9:00 PM UK BOE Policy Rate and Statement, at 9:30 PM UK BOE Governor Bailey’s Press Conference and US Challenger Job Cuts, at 10:15 PM EurozoneECB policy rate and statement release, 10:30 PM US Initial Jobless Claims, 10:45 PM Eurozone ECB President Lagarde press conference, 12:00 AM US JOLTS Job Openings, 12:30 AM US Weekly Natural Gas Inventories, and 2:40 AM Canada BOC Governor McClem remarks are scheduled.We will be watching closely to see if the pound, which has fallen against the US dollar, will recover.