The ECB’s relative hawkishness or at least lower dovishness on 24 July seems to have boosted the euro significantly, with euro-pound in particular continuing its uptrend. Here though the generally weaker recent sentiment on British growth and disappointing retail data added fuel to EURGBP’s gains. There’s also some likelihood that the EU will secure a trade deal with the USA in the next few days before the deadline for new tariffs of 1 August.
87p on 24 July was euro-pound’s highest daily close since December 2023 and gains continued intraday the following day with a clear push above the 23.6% monthly Fibonacci retracement. The overall trend since March is upward and these two days might suggest that the latest phase of it isn’t close to exhaustion yet; on the contrary, momentum has increased in recent sessions. However, volume has been significantly lower since late April and now a seasonal further drop might be possible. The slow stochastic signals overbought and ATR hasn’t risen significantly in recent days.
The 20 SMA might be an important dynamic support in the near future, but first it’d be possible to see the 23.6% Fibo flipping to support from resistance previously. Traders are looking ahead to the eurozone’s flash GDP for Q2 on 30 July and inflation on 1 August although the latter might be overshadowed by the NFP the same day.
This is my personal opinion, not the opinion of Exness. This is not a recommendation to trade.
87p on 24 July was euro-pound’s highest daily close since December 2023 and gains continued intraday the following day with a clear push above the 23.6% monthly Fibonacci retracement. The overall trend since March is upward and these two days might suggest that the latest phase of it isn’t close to exhaustion yet; on the contrary, momentum has increased in recent sessions. However, volume has been significantly lower since late April and now a seasonal further drop might be possible. The slow stochastic signals overbought and ATR hasn’t risen significantly in recent days.
The 20 SMA might be an important dynamic support in the near future, but first it’d be possible to see the 23.6% Fibo flipping to support from resistance previously. Traders are looking ahead to the eurozone’s flash GDP for Q2 on 30 July and inflation on 1 August although the latter might be overshadowed by the NFP the same day.
This is my personal opinion, not the opinion of Exness. This is not a recommendation to trade.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.