Strong Rebound in EURGBP Ahead of Spanish Unemployment

In June, the EUR/GBP experienced a notable upward retracement, gaining over a penny and closing the earlier negative gap. This upward move, however, was short-lived. The pair reversed course in July after failing to break above the 50-day Simple Moving Average (SMA). This failure indicated a lack of bullish momentum and resulted in a lower price for the month, pushing below 0.84 briefly.

Bullish Reversal for EUR/GBP After the Selling Pressure in June

The bearish reversal intensified, especially just below the 0.85 level, signaling significant selling pressure. The EUR/GBP dropped around 10 pips below its June low, briefly falling below 0.84 to a low of 0.8398 in mid-June. This was followed by a quick rebound, showing that buyers were still present and willing to support the currency pair at these lower levels.

EUR/GBP Chart Daily – The Support Zone Held Again

Despite the temporary dip, EUR/GBP bounced back, rising 50 pips above the 0.84 mark. This rebound suggests some buying interest near the 0.8382 level, yet the overall outlook remains bearish as long as the pair remains below the 0.8498 resistance. The broader downtrend is expected to resume, potentially driving the pair below 0.8382 in the future.

France July Consumer Confidence

• The July Consumer Confidence index in France rose to 91 points, exceeding the expected 90 points. This indicates a slight improvement in consumer sentiment.
• The index for June was initially reported at 89 points but has since been revised up to 90 points.
• The increase suggests a growing optimism among French consumers, possibly due to stabilizing economic conditions or improving employment prospects.
• The consumer confidence index is a key indicator of household sentiment regarding personal financial situations and overall economic conditions, which can impact consumer spending and economic growth.
• A reading above 90 indicates a positive outlook, but it still remains below the 100-point mark, which separates positive from negative sentiment. The recent data points to a gradual recovery in consumer confidence, which could support economic activity in the coming months.

EUR/GBP Live Chart