**EUR/USD and GBP/USD Maintain Bullish Momentum in July**
*Adapted from the original article by Steve Miley at ForexTraders.com*
As midsummer trading continues, the euro (EUR) and British pound (GBP) have both sustained their bullish positioning against the US dollar (USD). Despite a backdrop of complex macroeconomic data and shifting monetary policy expectations, the EUR/USD and GBP/USD currency pairs have extended upward trends established earlier this year. With central banks in focus and inflation narratives evolving, traders are keeping a close watch on potential turning points, but for now, the technical and fundamental dynamics support continued upside momentum.
This in-depth look analyzes the current trends, key technical levels, and broader market drivers impacting EUR/USD and GBP/USD in the short to medium term.
## Overview of Current Market Sentiment
The US dollar has struggled to maintain strength in recent weeks. This persistent softness stems principally from market expectations around the Federal Reserve’s rate path. While US inflation data has remained relatively sticky, signs of a slowing labor market and softening economic indicators have led traders to price in fewer rate hikes for the rest of the year.
This shift has helped unlock gains in major counterparts such as the euro and pound. In contrast to the Fed’s more cautious stance, the European Central Bank (ECB) and Bank of England (BoE) have continued signaling the need for further monetary tightening, supporting their respective currencies.
Key drivers of the USD weakness include:
– Expectations of a pause or slowdown in the Federal Reserve’s rate hiking cycle
– Signs of moderation in US economic growth
– Strength in risk assets reducing safe-haven demand for the USD
Meanwhile, bullish dynamics in EUR/USD and GBP/USD stem from:
– Tighter monetary policy outlooks for the ECB and BoE
– Resilient economic activity data from the Eurozone and UK
– Technically confirmed breakouts above key resistance zones
Let us now take a deeper dive into the technical structure and near-term projections for both major currency pairs.
## EUR/USD Technical Outlook: Continuation of the Uptrend
Having rebounded sharply from March lows and built upon key support levels, EUR/USD has displayed sustained strength in Q2 and now into early Q3. The pair reflects a clear bullish structure with higher highs and higher lows, supported by fundamental trends and technical breakouts.
**Key Technical Highlights:**
– The EUR/USD pair has been trading within a clear ascending channel since mid-April, consistently respecting trendline support.
– Recent price action saw the pair break above significant resistance at 1.1000 and push toward the 1.1200 area, confirming bullish continuation.
– 20-day and 50-day moving averages are sloped upward and act as dynamic support levels on pullbacks.
– Positive momentum indicators (MACD and RSI) are confirming the established uptrend, with RSI staying in bullish territory but not yet at overbought extremes.
– Near-term support resides at former resistance zones around 1.1065 and 1.1000. A deeper corrective move may find bids near 1.0900 and the 50-day moving average.
– Immediate targets for bulls lie at 1.1275 and beyond that around 1.1400, levels last seen in early 2022.
**Short-Term Forecast:**
Market sentiment remains supportive of further gains, especially if upcoming Eurozone inflation and labor data exceed expectations or if Fed commentary reinforces pause expectations. However, traders should monitor potential corrective moves, particularly if US macro data surprises to the upside.
**Key Levels to Watch:**
– Resistance: 1.1275, 1.1400, 1.1480
– Support: 1.1065, 1.1000, 1.0900
## GBP/USD Technical Overview: Strong Uptrend with Higher Targets
GBP/USD has mirrored the bullish behavior of EUR/USD but with even stronger relative performance. The pound has benefitted from both domestic
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