GBP/USD is trading at $1.23934, up 0.15%, as the pair builds momentum above the $1.23512 pivot point. Immediate resistance is seen at $1.24434, with the next target at $1.24976 if buying interest continues. On the downside, support is firm at $1.23067, with a deeper safety net at $1.22499.
Technical indicators reflect mixed sentiment. GBP/USD is trading below the 50-day EMA at $1.25249 and the 200-day EMA at $1.26541, indicating broader bearish pressure. However, oversold conditions indicate the potential for a short-term rebound, especially if prices remain above $1.23512.
A sustained move above $1.24434 could confirm bullish traction, while a dip below $1.23512 could expose the pair to renewed selling pressure.
The euro is falling while manufacturing data across Europe is stagnating
Eurozone manufacturing data showed mixed trends, with Spain’s PMI coming in at 53.3, slightly below forecast of 53.6, and beating Italian expectations at 46.2. However, the weak figures from France (41.9) and Germany (42.5) reflect ongoing industrial challenges.
The Eurozone’s Final Manufacturing PMI stood at 45.1, underscoring the ongoing contraction. Meanwhile, the M3 money supply grew by 3.8%, better than forecast.
Upcoming German unemployment data and Spanish jobs statistics will provide further insight into labor market conditions affecting the euro’s trajectory.