The GBP/USD pair is trading at $1.27310, up 0.38%, supported by a bullish breakout above the pivot point at $1.26833. The pair finds immediate resistance at $1.27677, with further levels at $1.28050 and $1.28463. On the downside, the main support is at $1.26455, followed by $1.25890 and $1.25318.
The 50-day EMA of $1.26422 strengthens short-term support, while the 200-day EMA of $1.27035 provides an intermediate threshold. A sustained move above $1.26833 keeps the pair’s bullish momentum intact and targets higher resistance zones.
However, a break below this level could signal a reversal towards support at $1.25890. For now, the pair remains on an upward trajectory, with cautious optimism prevailing.
Euro weakens due to falling German retail sales
The euro faced pressure as German retail sales fell 1.5%, well below the forecast of -0.5%. Meanwhile, German import prices rose by 0.6%, pointing to higher costs.
French data showed consumer spending fell 0.4%, with inflation easing slightly as France’s preliminary CPI fell to -0.1%.
Flash estimate annualized core CPI is expected at 2.8%, while German unemployment changes at 20,000. All eyes are on Buba President Nagel’s comments later today.