GBP/USD is trading lower at $1.28738, down 1.27% amid dollar strength. The pair is below the pivot point at $1.28917, signaling a bearish bias in the short term.

Immediate support lies at $1.28464, and a break below this could push GBP/USD toward $1.28135 and potentially $1.27792 if the selling pressure intensifies.

On the upside, resistance is at $1.29197, followed by $1.29518. However, with the 50-day EMA at $1.29620 and the 200-day EMA at $1.29975, strong overhead resistance suggests limited room for recovery unless these levels are breached.

For now, staying below $1.28917 keeps the bearish outlook intact, as the stronger dollar weighs on the pound.

Euro Weakens Amid Mixed Data, Lagarde’s Speech Looms

The euro faced mixed influences on Tuesday with French industrial production falling by -0.9%, missing expectations of -0.5%, while the government budget deficit widened to -173.8 billion euros. Spanish unemployment rose by 26.8K, slightly higher than forecast.

Looking ahead, German factory orders are expected to show a recovery with 4.2% growth, and ECB President Christine Lagarde is set to speak, potentially impacting the euro’s short-term outlook.

EUR/USD Technical Forecast