GBP/USD is trading around $1.29630, rising 0.02% and staying just above the pivot point at $1.29425. This level is critical as it supports a potential bullish reversal, especially as an upward trendline provides additional strength here.
The 50-day EMA at $1.29756 and the 200-day EMA at $1.29874 suggest that the next resistance is close, which could challenge the upside momentum. If the pair manages to gain $1.29665, further targets at $1.29809 and $1.29928 come into play.
However, if you drop below $1.29425, the tone may turn bearish, with support likely to emerge at $1.29324 and $1.29192.
The EUR weakens on mixed economic data from Germany and Italy
Germany’s preliminary CPI rose 0.4%, beating expectations, while unemployment figures rose to 27,000, indicating a weaker labor market. Italian GDP growth stagnated at 0.0%, lagging behind the expected increase of 0.2%.
Market participants are now looking to the European Central Bank’s Economic Bulletin for further insights on the economic health of the eurozone.
Upcoming inflation and unemployment data will be critical in shaping market sentiment on the EUR’s short-term trajectory.