GBP/USD is trading at $1.25466, down 0.17%, while the pair is hovering below the pivot point at $1.25773, which has become a key resistance level. Immediate support is seen at $1.25063, with deeper levels at $1.24669 and $1.24296, indicating further downside potential if bearish momentum continues.
On the upside, resistance lies at $1.26138 and $1.26597, while the 50-day EMA at $1.25910 caps near-term recovery attempts. The broader bearish sentiment is reinforced by the 200-day EMA at $1.27311.
A sustained move above $1.25773 could shift sentiment toward a bullish recovery, but below this pivot, sellers remain in control.
The euro is experiencing weak business sentiment
The euro (EUR) remains under pressure as Germany’s Ifo Business Climate index fell to 85.7, missing the forecast of 86.1 and remaining below the previous 86.5. Similarly, Belgium’s NBB business environment improved slightly to -11.1, although it is still in contraction territory.
Market participants are also focusing on the upcoming German GfK Consumer Climate data, expected at -18.8, which could provide additional insight into economic sentiment.
ECB President Lagarde’s recent comments highlight the ongoing challenges in the eurozone’s recovery efforts.