Both euro and British pound extended their gains versus the U.S. dollar on Tuesday. But the best performer was the pound sterling which rose toward 1.25 after U.K. inflation accelerated more than expected. Higher inflation increases the pressure on the Bank of England to raise interest rates. The market is now pricing in a potential BoE rate hike by August 2018.
The euro strengthened against the dollar as concerns about euro-area political risks eased. Polls showed Emmanuel Macron was the most convincing candidate in the first French presidential debate.
Meanwhile, the greenback continues to struggle with uncertainty over prospects for Trump's policies as the market expected too much from the U.S. president. There is concern that pro-growth U.S. policies won't pass through Congress. However, not all hope is lost for dollar bulls and the greenback could quickly resume its rally as soon as optimism about Trump's pro-growth agenda builds up again.
GBP/USD
Is it time for a correction? The pound rose towards 1.2510 and tested the upper boundary of the recent upward channel. The upward dynamic could however run out of steam as there is a crucial resistance area around 1.2520/50. We therefore see a higher likelihood of upcoming bearish momentum, driving the pair towards 1.24. 
EUR/USD
As expected, the euro tended to test the resistance zone near 1.0820. We anticipate a technical correction now, driving the euro lower towards 1.0710. If, however, the euro breaks above 1.0835 we may see further gains towards 1.0870 and 1.09. 
There are no major economic reports scheduled for release today, so trading might be quieter.
Here are our daily signal alerts:
EUR/USD
Long at 1.0825 SL 25 TP 20, 40
Short at 1.0775 SL 25 TP 40-50
GBP/USD
Long at 1.2510 SL 25 TP 30-40
Short at 1.2459 SL 25 TP 20, 50
We wish you good trades and many pips!
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