EUR/GBP Analysis and Forecast for First of July

EUR Preparing for a Bullish Market Shift

The EUR/GBP currency pair, also known as “Chunnel” due to the Channel Tunnel linking Europe and the UK, represents the exchange rate between the Euro and the British Pound. This pair is heavily influenced by economic and political events in the Eurozone and the United Kingdom. Traders often monitor it for insights into the relative strength of these two major currencies. The EUR/GBP H4 candlestick chart indicates a potential bullish phase as this price line breaks out of a bearish structure, forming higher highs and higher lows. This upward movement is supported by the price rising above the Ichimoku cloud, signaling a bullish trend. Additionally, the RSI is above 60, indicating strong bullish momentum. These technical indicators suggest that the EUR/GBP pair might continue its upward trajectory in the near term.

   Chart Notes: 

  • Chart time-zone is UTC (+03:00)
  • Candles’ time-frame is 4h.

The EUR/GBP H4 candlestick chart indicates a potential bullish phase as this price line breaks out of a bearish structure, forming higher highs and higher lows. This upward movement is supported by the price rising above the Ichimoku cloud, signaling a bullish trend. Additionally, the RSI is above 60, indicating strong bullish momentum. These technical indicators suggest that the EUR/GBP pair might continue its upward trajectory in the near term.
Recent economic data supports this outlook. The Eurozone’s PMI figures have generally beaten expectations, with the Italian Manufacturing PMI at 45.7, French Final Manufacturing PMI at 45.4, and the overall Final Manufacturing PMI at 45.8, all surpassing their forecasts. In contrast, the UK’s economic data presents a mixed picture, with the Final Manufacturing PMI revised down to 50.9 and weaker-than-expected M4 Money Supply and Net Lending to Individuals figures. These economic divergences may further support the EUR over the GBP, bolstering the bullish sentiment for the EUR/GBP pair.

• DISCLAIMER: Please note that the above analysis is not an investment suggestion by “Capitalcore Ltd”. This post has been published only for educational purposes.