GBP/USD is trading at $1.25764, down 0.10%, as the pair faces selling pressure after a symmetrical triangle breakout. The pivot point at $1.25954 serves as a critical threshold; staying below this level reinforces the bearish outlook, while a break above could shift momentum towards $1.26311 and beyond.
Immediate support is found at $1.25500, with deeper levels at $1.25120 and $1.24755. The pair is trading below the 50-day EMA at $1.26414 and the 200-day EMA at $1.27747, indicating a bearish bias.
The overall structure suggests a cautious stance, with sellers retaining control unless buyers regain control. Look for a decisive move to break $1.25954 as this could determine the short-term trajectory for GBP/USD.
Problems with the euro: GDP at 0.1%, PMIs below expectations
The euro faced headwinds as German GDP growth slowed to 0.1% q/q, below the 0.2% expected. France’s Flash Manufacturing PMI fell to 43.2, below the forecast of 44.6, while the services PMI fell to 45.7 from an expected 49.1.
Similarly, the German services PMI fell to 49.4, missing the forecast of 51.6. Manufacturing PMIs showed stagnation, indicating continued economic challenges.
The markets are closely watching the ECB’s next steps and the speeches of President Lagarde and Buba-President Nagel.