The Euro rose against the British pound on Tuesday, as the selling may have gotten a bit overdone here. With this, there are a few potential moves that I am watching in this pair.

EUR/GBP

The Euro rose against the British pound during trading on Tuesday as we have reached towards the 0.8550 level. This is an area that’s been resistance previously, and now it has shown itself to be so again. If we could break above the 0.8550 level, then it opens up the possibility of a move to the 0.86 level, which was a major support level.

Ultimately, this is a market that continues to see a lot of volatility and choppiness, and quite frankly, most of what we have seen to the downside more or less focused on the idea that the incoming Prime Minister in the United Kingdom was bringing in some cabinet members that would be a little bit more fiscally responsible. That being said, the market has turned around, and it does look like it’s trying to overcome that 0.8550 level.

Key Technical Levels and Market Dynamics

If it does, then it would not surprise me at all to see this market re-enter the consolidation area we had been in previously, which of course had the floor of 0.86 and the ceiling of 0.8750.

If we fail, then a return to the 0.85 level would not be a huge surprise. Signs of exhaustion probably have people looking to short this pair, as it gives you an opportunity to follow the most recent swing.

The market has seen the British rates over 5% in the 10-year yield for some time, and that is also something to keep in mind: the interest rate differential, so it does favor the downside, but the question at this point is, did we get a little overdone with our selling?

Ready to trade our daily forecast and analysis? Here’s a list of some of the top forex brokers UK to check out

Christopher Lewis is a technical analyst and market commentator at DailyForex with more than two decades of trading experience in Forex and other leveraged markets. Based in Columbus, Ohio, he specializes in chart-based analysis of major currency pairs, stock indices, commodities, and energy markets, focusing on clear support and resistance levels, trend structure, and risk management. Christopher produces daily written and video analysis for traders who rely on technical setups to navigate volatile market conditions

As seen on: Pairs Of Aces Podcast,The Trader Guy, FXEmpire

– Written by


Minesh Chaudhari

STORY LINK Pound Sterling Forecast: Politics and Jobless Claims in Focus for GBP

The Pound to US Dollar (GBP/USD) exchange rate traded without a clear direction on Wednesday as investors assessed the latest UK inflation figures.

At the time of writing, GBP/USD was changing hands at approximately $1.3367, little changed from the start of Wednesday’s session.

The Pound (GBP) remained broadly stable after the Office for National Statistics (ONS) published June’s consumer price index.

The report showed headline inflation eased from 2.8% to 2.6%, falling below expectations for a more modest slowdown to 2.7% and marking the weakest annual rate of price growth since March 2025.

Ordinarily, a softer inflation reading would have weighed more heavily on Sterling by reinforcing expectations that the Bank of England (BoE) will be under less pressure to tighten monetary policy again this year.

However, losses were limited as core inflation proved more resilient than expected. Investors also remained mindful that the recent surge in energy prices, driven by renewed tensions in the Gulf, could cause inflationary pressures to strengthen again over the coming months.

The US Dollar (USD) regained momentum on Wednesday as escalating tensions in and around the Strait of Hormuz dampened global risk appetite.

An intensification of the conflict and continued disruption to one of the world’s most important shipping routes pushed Brent crude close to $95 per barrel, heightening concerns over global energy supplies and prompting investors to favour traditional safe-haven currencies.

The jump in oil prices also fuelled speculation that higher energy costs could keep US inflation elevated, supporting expectations that the Federal Reserve may need to maintain a restrictive monetary policy stance for longer.

Near-Term GBP/USD Forecast: Political Developments Could Drive Sterling

Looking ahead to Thursday, the UK economic calendar is relatively quiet following a busy run of domestic data releases, leaving political developments as a potential driver of the Pound to US Dollar (GBP/USD) exchange rate.

Investors will continue monitoring the reaction of the gilt market to Andy Burnham’s first days as Prime Minister. Any renewed concerns over the government’s fiscal plans or borrowing strategy could limit support for Sterling.

Meanwhile, the US Dollar may come under modest pressure if the latest US initial jobless claims figures reveal a further increase in unemployment benefit applications, potentially reinforcing expectations of a softer US labour market.

Like this piece? Please share with your friends and colleagues:

International Money Transfer? Ask our resident FX expert a money transfer question or try John’s new, free, no-obligation personal service! ,where he helps every step of the way,
ensuring you get the best exchange rates on your currency requirements.

TAGS: Pound Dollar Forecasts

EUR/USD Analysis Summary Today

• Overall Trend: Medium-term bearish, with the potential for short-term corrective rebounds before resuming the primary trend.

• Support Levels for EUR/USD Today: 1.1380 – 1.1320 – 1.1250

• Resistance Levels for EUR/USD Today: 1.1445 – 1.1500 – 1.1530

EUR/USD Trading Signals:

• Buy scenario: Buy from the support level of 1.1330, targeting 1.1500, with a stop-loss order placed below 1.1250.

• Sell scenario: Sell from the resistance level of 1.1500, targeting 1.1380, with a stop-loss order placed above the resistance level of 1.1560.

Technical Analysis of EUR/USD Today

In the short term, the EUR/USD pair is trading within a descending price channel characterized by lower highs and lower lows, reflecting continued seller dominance over the near horizon. Meanwhile, the 14-period Relative Strength Index (RSI-14) is approaching oversold territory—a sign that negative momentum is beginning to wane, thereby increasing the likelihood of a limited technical rebound before the next direction is established.

Accordingly, 1.1375 remains the primary support level to watch, as a break below it could open the way toward 1.1355 and potentially lower levels. Conversely, if price manages to hold above this support, we may see a rebound toward 1.1430 followed by 1.1455.

Over the medium term, the general trend for the Euro against the US Dollar still leans negative. Price action continues inside a descending channel on the daily timeframe, pointing to sustained selling pressure despite recent recovery attempts. Nevertheless, the RSI bouncing from near-oversold levels suggests a slowdown in selling momentum, with the potential for the upward correction to extend if the pair manages to hold above current support levels.

Under this scenario, price may move to test the psychological resistance level at 1.1500, while 1.1620 represents the next technical target in the event of a clear breakout.

However, if buyers fail to maintain positive momentum, the pair could return to test 1.1300, with the decline potentially extending toward 1.1180 should selling pressure intensify.

Fundamental Analysis: EUR/USD

Trading in the EUR/USD pair on trusted broker platforms reflects a cautious atmosphere as investors weigh improving European economic data against sustained strength in the US Dollar, all while markets eagerly await the European Central Bank (ECB) rate decision, which could serve as the primary driver for the pair in the period ahead.

German ZEW index data showed a notable improvement in investor sentiment for July, with the Economic Sentiment Index rising to 26.3 points compared to 10.5 points in June, outperforming market expectations. Additionally, the Current Conditions Index recorded -77.6 compared to -81.0 in the previous month.

This improvement extended across the broader Eurozone, where the ZEW index rose to 23.4 points, signaling growing optimism regarding the outlook for the European economy and providing relative support for the shared currency.

Meanwhile, German producer price data showed continued easing of inflationary pressures, giving the European Central Bank (ECB) room to maintain its current approach without needing to tighten monetary policy further.

Market focus now shifts to the ECB interest rate decision and President Christine Lagarde’s press conference, where market participants will look for any signals regarding the path of interest rates over the coming months. Any tone more hawkish than expected could provide the Euro with an upward boost, whereas cautious or dovish remarks could trigger renewed selling pressure on the pair.

Today’s Outlook Summary:

From a technical standpoint, the overall trend remains tilted to the downside; however, price proximity to key support zones alongside waning bearish momentum may allow the short-term corrective rebound to continue. The next major directional move for the EUR/USD pair will likely be determined following the ECB decision, alongside US Dollar developments and overall market risk sentiment.

Trading Tips:

market volatility is expected to spike in tandem with the ECB rate decision and any high-impact US economic data releases. Therefore, it is strongly advised to adhere strictly to risk management practices, utilize stop-loss orders, and avoid opening oversized positions ahead of key data announcements.

Ready to trade our Forex daily forecast? We’ve shortlisted the best FX trading platform in the industry for you.

Copper price formed bullish rally yesterday, achieving some gains by reaching $6.490 level, approaching the barrier at $6.5100, representing a confirmation key for activating the bullish trend.

The price might be forced to form some sideways trading, however the continuation of providing positive momentum by the main indicators will increase the chances of surpassing the current barrier, to expect targeting new positive stations that might begin at $6.6100 and $6.7300.

The expected trading range for today is between $6.3500 and $6.6100

Trend forecast: Bullish

Copper price formed bullish rally yesterday, achieving some gains by reaching $6.490 level, approaching the barrier at $6.5100, representing a confirmation key for activating the bullish trend.

The price might be forced to form some sideways trading, however the continuation of providing positive momentum by the main indicators will increase the chances of surpassing the current barrier, to expect targeting new positive stations that might begin at $6.6100 and $6.7300.

The expected trading range for today is between $6.3500 and $6.6100

Trend forecast: Bullish