The GBP/USD pair is trading at 1.26108, up 0.30% while hovering near the pivot point at $1.26328, a crucial level for determining the next change in direction. Immediate resistance is at $1.26875, with a stronger barrier at $1.27804. On the downside, support is at $1.25543, with deeper levels at $1.24867.
Technical indicators show the 50-day EMA at $1.26820 and the 200-day EMA at $1.27465, suggesting overhead pressure. The uptrend line break near $1.26328 could act as a catalyst for bearish momentum.
A sustained move below this level could push the pair towards $1.25543. However, a decisive break above $1.26328 could shift the focus to $1.26875.
The euro (EUR) remained stable after the final core CPI met expectations at 2.7% year-on-year. However, the final CPI lagged slightly at 2.2% annualized, versus a forecast of 2.3%. Germany’s GfK Consumer Climate improved to -21.3, surpassing expectations of -22.6 and the previous -23.1.
Traders are now focusing on the upcoming eurozone current account data, which is expected to reach €33.5 billion, for further direction. Mixed data points to resilience, but underlines the challenges to sustainable economic recovery.