EUR/USD and GBP/USD Technical Analysis: Wave Outlook & Risks

Geopolitical uncertainty continues to influence market sentiment as military operations in the Middle East approach potential operational limits. The U.S. administration faces logistical constraints following over 13,000 strikes against Iranian targets, compounded by high replacement costs for defense systems such as Patriot and Tomahawk missiles, which cost between $4 million and $6 million per unit.

Would you like to read more market analysis about Best, Solution, and Everyone?

With the U.S. Senate demonstrating reluctance to authorize additional defense funding, a strategic pause or conflict freeze appears increasingly likely. This geopolitical deadlock is expected to persist at least until the U.S. congressional midterm elections, stabilizing risk sentiment across financial markets in the interim.

EUR/USD Technical Outlook

From a technical standpoint, EUR/USD remains within a primary long-term upward trend, despite current short-term downward corrective momentum. The broader wave pattern indicates that the pair is approaching an attractive zone for establishing long positions.

Grid trading done right – try the robust Grid Expert Advisor. Details here.

In the short term, EUR/USD may extend its current decline toward the 1.1300 handle (13th figure) to complete wave 5 of C. Traded positions are expected to shift toward buying once this corrective wave finishes its trajectory.

GBP/USD Technical Outlook

The wave structure for GBP/USD presents a complex configuration, having formed three distinct downward waves. Unlike EUR/USD, the British Pound may execute a minor secondary downward wave, which would function as wave 2 within a new bullish cycle.

Once this corrective retracement concludes, GBP/USD is projected to initiate wave 3 of its new upward trend. Key medium-term upside targets for this advance are located around the 1.3700–1.3800 resistance zone (37–38 level).

Thank you for reading. Level up your trading with proven RobotFX expert advisors – check them out now.