The GBP/USD pair is trading at $1.2647, down 0.25%, as it faces resistance near the pivot point at $1.2683, strengthened by a downtrend line. Immediate resistance is seen at $1.2719, followed by $1.2768 and $1.2805, with the 200-day EMA at $1.2705 further supporting the bearish bias.
On the downside, support lies at $1.2618, with additional levels at $1.2567 and $1.2506 offering potential safety nets.
The 50-day EMA at $1.2612 is closely aligned with immediate support, highlighting the pair’s bearish sentiment. A decisive break below $1.2618 could lead to further declines, while a move above $1.2683 could signal bullish momentum.
The euro is weakening due to gloomy German consumer confidence
The euro weakened as Germany’s GfK Consumer Climate fell to -23.3, below expectations of -18.8, reflecting continued consumer pessimism.
Key upcoming figures include the German preliminary CPI m/m, which is expected to decline by 0.2%, and the Spanish Flash CPI y/y, which is expected to rise to 2.3%.
Moreover, M3 money supply and retail loans figures are expected to show modest annual growth of 3.4% and 0.8% respectively. The results of the Italian ten-year bond auction will further gauge market sentiment.