FX.co ★ Trading tips for EUR/USD and GBP/USD on July 26

Pound continued to rise, albeit a little, because of the upcoming debate of candidates for the post of Prime Minister of the UK. Both Rishi Sunak and Liz Truss spoke against China, declaring the need for a tougher policy, especially in terms of trade relations. They said it is urgent to impose restrictions on the activities of Chinese companies and seek more favorable trading conditions because those could lead to sad consequences for the United Kingdom itself.

Much will be seen from how the market will behave today, for example, pound could jump sporadically if it returns to the values of yesterday's market opening. The main cause could be the reaction of traders over the statements of Sunak and Truss. On the other hand, if pound remains at current levels or continues to grow, quotes will be volatile, especially given the forecasts for a rate hike by the Fed.

EUR/USD has been moving within 1.0150/1.0270 for the past six days. This indicates the indecisiveness of traders, which could lead to accumulation. In this situation, the best trading tactic is to break through one or more borders.

The correction in GBP/USD extended, making the quote stay above 1.2050, which, in theory, gives a buy signal towards 1.2150. The situation will change only if pound returns below 1.2000.