GBP/USD is trading at $1.26185, down 0.36%, as the pair continues its decline within a descending channel on the 4-hour chart. Prices remain below the pivot point at $1.26641, indicating bearish sentiment. Immediate resistance is at $1.27138, with the next hurdle at $1.27991, while support is at $1.25890 and deeper at $1.25259.
The 50 EMA of $1.27236 and the 200 EMA of $1.27181 are reinforcing the selling pressure. A break above $1.26641 could signal a shift to bullish momentum, but for now the sellers appear to be in control.
Euro under pressure due to weak German trade and ECB update
The euro is under pressure as German trade data exceeded expectations to reach €13.4 billion, versus a forecast of €15.7 billion. Industrial production m/m is estimated at 0.0%, indicating stagnation after the previous -2.0%. Meanwhile, the ECB kept interest rates stable at 3.15%, with no surprises in its monetary policy statement.
Italy’s unemployment rate improved to 6.1%, providing some regional optimism. Markets are now focusing on the G7 meetings for possible global economic updates affecting the euro.