The GBP/USD is trading at $1.26396, up 0.24%, as it gains strength near the pivotal $1.26663 level, supported by an upward trendline on the 4-hour chart. This level is crucial for maintaining the bullish momentum, with immediate resistance at $1.27194 and a stronger hurdle at $1.27966.

On the downside, support is observed at $1.26046, followed by $1.25255, offering a safety net for the pair.

The 50 EMA at $1.26884 and the 200 EMA at $1.27083 highlight a mixed sentiment, with sellers likely to challenge gains near resistance levels. For now, the bullish trend remains intact, but a break below $1.26663 could invite sharp selling pressure, pushing prices toward lower supports.

Euro Outlook: German Trade Data Disappoints, PMIs Ahead

The euro faced pressure following disappointing German trade balance data, which fell to €13.4B against a forecast of €15.7B. Weakness in wholesale prices (0.0%) and stagnant French CPI (-0.1%) underscored economic challenges.

Looking ahead, Monday’s key flash PMIs will shape sentiment. French Manufacturing PMI is expected at 43.2, signaling contraction, while Services PMI holds steady at 46.9. German PMIs are marginally better but still sluggish, with Services forecasted at 49.5.

ECB President Lagarde’s speeches will be closely monitored for policy signals, especially as inflation and growth concerns persist in the eurozone. The euro remains vulnerable to further downside.

EUR/USD Technical Forecast