The GBP/USD is trading at $1.22864, up 0.84%, showing some resilience despite broader market jitters after new U.S. tariffs on Canada, Mexico, and China rattled investor sentiment. The pair is hovering just below its pivot point at $1.23004—a key level to watch.
A sustained move above this could trigger bullish momentum toward immediate resistance at $1.23549, with the next target at $1.24113. However, the 50-EMA at $1.23994 and the 200-EMA at $1.23834 may cap further gains.
On the downside, if GBP/USD fails to hold above $1.23004, a pullback toward $1.22300 and potentially $1.21602 is likely. The market’s next move hinges on how it reacts around the pivot, with bullish bias above and bearish pressure below.
Euro Awaits Key PMI and CPI Data for Market Direction
The Euro faces a pivotal day on February 3, with key economic data set to influence its trajectory. Spanish Manufacturing PMI is forecast at 53.5, indicating potential growth, while Italy’s PMI is expected to rise to 46.8.
France and Germany’s final PMIs are projected to remain steady at 45.3 and 44.1, reflecting continued manufacturing challenges.
Inflation data, including the Core CPI Flash Estimate (2.6% forecast) and CPI Flash Estimate (2.4%), will be critical in shaping market sentiment.
