GBP v EUR breaks past key resistance barrier

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waterman

Written by Dan Waterman
February 3rd 2026
£-€ breaks above a long-standing resistance level, but what now??

The Pound v Euro has spent just 11-days above £-€1.1550 mid-market since July 2025.

This has been a very powerful resistance barrier 
for the pair and reminds me of the psychological £-€1.20 situation we saw back in 2022-2024. Today we witness £-€ 'comfortably' above the strongly resistant £-€1.1550, but can it hold?

No-one knows is the honest answer, but marginal gains in a very tightly traded environment are often wins worth taking, which is what we have personally seen this morning with many of our clients.

Do not be surprised to see either a 0.5%+ drop this week or push to £-€1.16, both would be normal cases after a breakthrough.

Three consecutive months of gains is a strong trend which may continue this month and would therefore wipe off the £-€1.1550 resistance. Here's to hoping!

Elsewhere; precious metal prices have stabilized, Australia has hiked its interest rate for the first time in 2-years (because of a hot economy) and is now pretty much the only major economy to buck the lower interest rate cycle trend (3.85%).

The USD has now gained 1.5% in a week on most currencies even though the US has a partial shutdown (again) and global investor sentiment has turned positive (Dollar was likely in oversold territory).