DAX Breakout Boosts EUR While GBP/USD Faces Technical Resistance

Germany's DAX index surged 0.8% to close at 19,650, breaking key technical resistance and supporting euro strength across forex markets. The index's momentum above the 19,500 level signals continued risk-on sentiment in European assets, providing fundamental support for EUR/USD's advance toward 1.0550. Meanwhile, GBP/USD consolidated near 1.2720, facing resistance at the 200-day moving average despite broad dollar weakness. The pound's underperformance reflects ongoing concerns about UK economic growth and Bank of England policy uncertainty. Technical analysis shows GBP/USD needs to clear 1.2750 to confirm bullish momentum, while support sits at 1.2680. The contrasting performance between EUR and GBP highlights diverging European economic outlooks. Traders should watch for a potential EUR/GBP long opportunity if the cross breaks above 0.8330, targeting 0.8360 as European equities continue to outperform.