The GBP/USD is trading at $1.26697, down 0.06%, reflecting cautious bearish sentiment on the 4-hour chart. The pair is hovering below its pivot point at $1.26872, which remains a key level for a potential shift in momentum.
The immediate resistance levels are $1.27195, $1.27544 and $1.27934, while immediate support is seen at $1.26362, followed by $1.26034 and $1.25669.
The 50-day EMA at $1.27493 underlines a bearish outlook, with the 200-day EMA at $1.29256 reinforcing broader downside pressure. A descending trendline continues to limit gains, maintaining a selling bias unless $1.26872 is breached.
The euro is gaining momentum on rising trade balance data
The euro received a boost as the euro zone’s trade balance rose to €13.6 billion, significantly exceeding expectations of €7.9 billion. Although ECB President Christine Lagarde avoided discussions on monetary policy in her remarks, she highlighted key structural challenges in the EU, including lagging innovation and geopolitical pressures.
Markets now await upcoming data, including current account and final CPI readings, for further direction. Sustained inflation of 2.7% could maintain the ECB’s cautious policy.