EUR/GBP Daily Price Forecast – 7th July 2025

EUR/GBP Technical Analysis (H4 Chart)

Trend Overview

• The EUR/GBP pair is in a strong uptrend, as indicated by the consistent formation of higher highs and higher lows.

• The price is trading above both the 50-period moving average (yellow) and the 200-period moving average (red), confirming bullish momentum.

• The moving averages are sloping upward, with the 50-period MA acting as dynamic support, reinforcing the bullish sentiment.

Key Levels

• Buy Stop @ 0.86440:

  • This level is positioned slightly above the current price, signaling a breakout strategy. A move above this level would confirm continued bullish momentum.

• Take Profit (TP) @ 0.86691:

  • This level aligns with a recent resistance zone, making it a logical target for profit-taking.

• Stop Loss (SL) @ 0.86050:

  • The stop loss is placed below a recent support level, providing a safety margin in case of a bearish reversal.

Price Action

• The price has recently broken out of a consolidation phase, indicating renewed buying interest.

• A pullback to the breakout level has occurred, and the price is now attempting to resume its upward movement.

• The bullish candlestick patterns near the 50-period moving average suggest strong buying pressure.

Indicators

• Moving Averages:

  • The 50-period MA is acting as immediate support, with the price bouncing off it multiple times.

  • The 200-period MA is sloping upward, confirming the long-term bullish trend.

• Momentum:

  • The momentum is strong, as the price is consistently trading above both moving averages.

Trade Setup

• Entry: A buy stop at 0.86440 ensures entry only if the price continues its upward momentum.

• Risk-Reward Ratio:

  • The distance between the entry (0.86440) and the stop loss (0.86050) is approximately 39 pips.

  • The distance to the take profit (0.86691) is 25 pips.

  • While the risk-reward ratio is slightly less than 1:1, the strong trend supports the trade's validity.

Outlook

• The overall sentiment for EUR/GBP remains bullish in the short term, supported by technical indicators and price action.

• A break above 0.86440 could lead to a test of the 0.86691 resistance level. However, failure to hold above the 0.86050 support level could invalidate the bullish setup.

Caution

• Monitor for any fundamental news or events that could impact the EUR or GBP, as they may cause volatility and affect the trade setup.

• Ensure proper risk management, as the risk-reward ratio is moderate.