GBP/USD is trading 0.37% lower at $1.28213 as it remains under pressure below its pivot point at $1.28463. This level has recently served as a breakout point and is now serving as an important pivot. Below that, the pair is likely to remain in a bearish trend.
Immediate support lies at $1.27916, and if sellers maintain control, further levels are at $1.27509 and $1.27210. Resistance levels are seen at $1.28856 and $1.29249, and the 50-day EMA is at $1.29079 reinforcing the bearish outlook.
Until GBP/USD clears $1.28463, cautious trading with a downside bias is expected.
Euro stable, German ZEW sentiment better than expected
The euro (EUR) held firm as Germany's month-on-month final consumer price index (CPI) reached an expected 0.4%, indicating that inflation in the region is stabilizing. Germany's ZEW Business Confidence Index was also slightly better than expected, rising from 13.1 in the previous survey to 13.2.
Meanwhile, broad ZEW economic sentiment in the euro area rose to 20.5, above expectations of 20.1. This modest improvement in sentiment is supporting the euro, despite the region's continued wide-ranging economic challenges.
