GBP/USD is trading at $1.26435, down 0.06%, indicating a cautious bearish sentiment on the 4-hour chart. The pair remains below the pivot point at $1.26735, suggesting further downside risk.

Immediate support is seen at $1.26129, with additional levels at $1.25713 and $1.25309 offering a safety net. Resistance is positioned at $1.27154 and $1.27544, with a higher ceiling at $1.27934.

The 50-day EMA at $1.26718 is aligning with the pivot, reinforcing bearish momentum, while the 200-day EMA at $1.27991 highlights a stronger resistance zone above.

Growth Amid Financial Uncertainty

The Eurozone’s economic outlook remains precarious, as the ECB’s Financial Stability Review highlighted elevated vulnerabilities in financial markets and sovereign debt. German PPI met expectations at 0.2%, signaling stable producer prices, while the German 30-year bond auction showed slightly higher yields at 2.55%.

Upcoming Eurozone Consumer Confidence data (-13 forecast) is unlikely to shift sentiment. Elevated borrowing costs and weak fiscal fundamentals continue to weigh on corporate balance sheets, leaving the euro under pressure amidst geopolitical and policy uncertainty.

EUR/USD Technical Forecast