EUR/GBP Daily Price Forecast – 2nd July 2025

EUR/GBP Analysis

Chart Overview

The chart provided is a 4-hour (H4) timeframe for the EUR/GBP currency pair. Key levels and indicators are marked, including:

• Buy Stop Level: 0.85979

• Take Profit (TP): 0.86440

• Stop Loss (SL): 0.85523

• Moving Averages:

  • A shorter-term moving average (yellow line).

  • A longer-term moving average (red line).

Technical Analysis

• Trend Analysis:

  • The pair appears to be in a short-term uptrend, as indicated by the price trading above both moving averages.

  • The moving averages are showing a bullish crossover, with the shorter-term moving average crossing above the longer-term moving average.

• Key Levels:

  • Resistance: The TP level at 0.86440 represents a significant resistance zone. This level aligns with previous price action where the pair faced selling pressure.

  • Support: The SL level at 0.85523 acts as a critical support zone. This level is below the recent consolidation area, providing a safety net for the trade.

• Entry and Exit Strategy:

  • Buy Stop: The entry point at 0.85979 is strategically placed above the current price, ensuring confirmation of bullish momentum before entering the trade.

  • Take Profit: The TP level at 0.86440 offers a reasonable risk-to-reward ratio, targeting a key resistance zone.

  • Stop Loss: The SL at 0.85523 is well-placed below recent lows, minimizing risk in case of a reversal.

• Moving Averages:

  • The price is trading above both moving averages, which is a bullish signal.

  • The moving averages are sloping upwards, further confirming the bullish momentum.

• Market Sentiment:

  • The chart suggests a bullish sentiment in the short term, with buyers likely to dominate as long as the price remains above the moving averages and the SL level.

Trade Setup

• Entry: Buy Stop at 0.85979.

• Stop Loss: 0.85523 (to protect against downside risk).

• Take Profit: 0.86440 (targeting the next resistance level).

Risk Management

• The trade setup offers a favorable risk-to-reward ratio. The distance between the entry and SL is smaller compared to the distance between the entry and TP, making this a calculated trade.

Conclusion

The EUR/GBP pair is showing bullish momentum on the H4 timeframe. The trade setup aligns with the current trend and technical indicators. If the price breaks above 0.85979, it is likely to continue toward the TP level at 0.86440. However, traders should monitor for any signs of reversal or unexpected market developments.