Lately, Federal Reserve Chair Jerome Powell has faced increasing pressure, coming under fire from lawmakers, the White House, and U.S. President Donald Trump.

In a letter sent on Thursday, Powell responded to criticism from a senior White House official regarding the Central Bank's $2.5 billion renovation project. "We take seriously the responsibility of being good stewards of public resources as we carry out the responsibilities Congress has assigned us on behalf of the American people," Powell wrote in a letter addressed to Russ Vought, Director of the White House Office of Management and Budget.

To recap, the controversy began with the renovation of two historic Federal Reserve headquarters buildings in Washington. Trump, Vought, and other presidential allies seized on the rising cost of the project and Powell's recent congressional testimony about the renovations to intensify scrutiny of his actions in recent weeks. The criticism coincided with repeated calls from Trump and his administration for the Fed to lower interest rates.

So far this year, Fed officials have kept rates steady, waiting for more clarity on how Trump's tariff policies and other economic measures will affect inflation and the labor market. This pause has drawn Trump's ire, with the president frequently lashing out at Powell. Trump has repeatedly voiced frustration over high rates, arguing that they constrain economic growth and negatively impact trade policy.

Lawmakers, for their part, have criticized Powell either for a lack of transparency in decision-making or for insufficient attention to regional economic issues. Nonetheless, Powell has consistently defended the Fed's independence and emphasized the importance of making decisions based solely on economic data and long-term objectives. He has stated on numerous occasions that monetary policy must remain free from political influence.

It is clear that the building renovation issue is merely a pretext aimed at forcing the Fed chair to resign from the committee.

Powell received support from fellow Fed Governor Christopher Waller, who explained part of the cost overrun as a result of inflation. "Every construction project I've ever heard of — it's just normal, I'm not defending it — but it's not unusual," Waller said. "And in 2017 we had much higher inflation than anyone anticipated. So that certainly plays a role."

As for the current EUR/USD technical picture:Buyers now need to figure out how to reclaim the 1.1655 level. Only then will it be possible to target a test of 1.1690. From there, the pair may climb to 1.1720, although doing so without support from major players will be quite difficult. The furthest target is the 1.1770 high. In case the instrument declines, I expect serious buying activity to appear only around 1.1598. If there's no demand at that level, it would be prudent to wait for a retest of the 1.1562 low or consider opening long positions from 1.1511.

Regarding the GBP/USD technical outlook:Pound buyers need to break above the nearest resistance at 1.3442. Only then can they aim for 1.3481, though pushing above this level will likely prove difficult. The ultimate target is the 1.3532 level. If the pair falls, bears will attempt to regain control at 1.3405. A successful break below this range would seriously undermine the bulls' positions and drive GBP/USD down toward the 1.3368 low, with a further move toward 1.3336 possible.