The GBP/USD is trading at $1.26396, up 0.24%, while gaining strength near the central level of $1.26663, supported by an upward trendline on the 4-hour chart. This level is crucial for maintaining bullish momentum, with immediate resistance at $1.27194 and a stronger hurdle at $1.27966.
On the downside, support is seen at $1.26046, followed by $1.25255, providing a safety net for the pair.
The 50 EMA of $1.26884 and the 200 EMA of $1.27083 highlight mixed sentiment, with sellers likely to challenge gains near resistance levels. For now, the bullish trend remains intact, but a break below $1.26663 could lead to sharp selling pressure, pushing prices towards lower supports.
Euro outlook: German trade data disappoints, PMIs advance
The euro faced pressure from disappointing data on Germany’s trade balance, which fell to €13.4 billion versus a forecast of €15.7 billion. The weakness of wholesale prices (0.0%) and the stagnant French CPI (-0.1%) underlined the economic challenges.
Looking ahead, Monday’s key flash PMIs will determine sentiment. The French manufacturing PMI is expected at 43.2, indicating a contraction, while the services PMI remains stable at 46.9. German PMIs are slightly better, but still sluggish, with a forecast value of 49.5 for the services sector.
ECB President Lagarde’s speeches will be closely watched for policy signals, especially as concerns about inflation and growth in the eurozone remain. The euro remains vulnerable to further downturns.