The French election results have heightened the likelihood of political gridlock, reducing the immediate risk of far-right dominance. This scenario has bolstered European currencies and assets, enabling them to overcome initial fears and rally confidently. Marine Le Pen’s Rassemblement National emerged with a stronger presence, but the lack of a clear majority hints at a potential stalemate. 

The EUR/USD chart shows a bullish breakout from a descending triangle, hinting at potential upward momentum in the near term. The French election results, which have increased the likelihood of governmental impasse, have reduced concerns about far-right control, thereby bolstering the Euro. The immediate resistance level is around the 1.0850 mark, aligning with the near-term target shown on the chart. This target is reinforced by a confluence of moving averages and trendlines that suggest further bullish continuation. Traders should watch for sustained movements above this level, which could pave the way for a test of higher resistance levels around 1.0900:

As we pivot to the European Central Bank Symposium in Sintra, Portugal, all eyes are on Christine Lagarde and her cohorts. With the symposium setting the stage for critical discussions on monetary policy, expect the Euro to be highly reactive to any hawkish or dovish tones. Lagarde’s opening remarks could set the tempo for the Euro's movements, especially if there are hints about future rate adjustments or economic forecasts.

Across the pond, the US Dollar is dancing to a different tune. The latest PCE Price Index report shows a slight decline in inflation, which has reignited speculations about potential rate cuts. With interest rate derivatives, such as overnight index swaps, indicating an approximately 63% probability of a rate cut in September, the market is abuzz with anticipation. However, the Fed officials remain steadfast in their stance, demanding sustained evidence of inflation cooling before making any decisive moves.

Meanwhile, the Pound Sterling is strutting its strength against major peers. Despite the looming uncertainty around the Bank of England’s rate cut timeline, the GBP is enjoying a bullish run. The UK’s headline inflation may have hit the target rate of 2%, but the persistent price pressures in the service sector are keeping BoE policymakers cautious. The upcoming UK elections further add a layer of unpredictability, but for now, the GBP is holding its ground admirably.

The GBP/USD pair has recently broken out of a short-term descending channel, signaling a potential bullish trend. This breakout aligns with the broader market optimism surrounding the UK’s economic outlook and French election results, despite ongoing uncertainties regarding the Bank of England's rate cut timeline. The pair is showing strong bullish momentum, with the next significant resistance level around the 1.2750 area. This target is reinforced by improving sentiment and technical indicators suggesting further upward movement: