GBP/USD is trading at $1.26640, up 0.12%, showing a slight bullish tilt as it holds above the pivot point at $1.26443. Immediate resistance lies at $1.26916, with further targets at $1.27235 and $1.27500.

On the downside, key support levels to watch are $1.26179 and $1.25887. The pair is supported by an upward trendline, with the 50-day EMA at $1.26683 reinforcing near-term strength.

Meanwhile, the 200-day EMA at $1.26571 serves as a critical foundation for maintaining upward momentum.  If prices remain above $1.26443, buyers could push toward the next resistance levels.

Euro Pressured Amid Weak Manufacturing Data

The Euro faced headwinds as manufacturing data across the Eurozone disappointed. Spain’s Manufacturing PMI dipped to 53.1 from 53.9, while Italy (44.5), France (43.1), and Germany (43.0) reported weaker-than-expected activity, all pointing to persistent contraction.

The bloc’s Final Manufacturing PMI held at 45.2, signaling ongoing economic challenges.

However, Italy’s unemployment rate improved to 5.8% from 6.0%. Markets now await Spanish unemployment data and France’s government budget balance for further direction.

EUR/USD Technical Forecast