GBPUSD

The GBP/USD pair started the week with PMI data. While the manufacturing sector PMI data in Germany and the US remain in contraction territory, dampening market sentiment, the PMI data for the services sector signals recovery. The contraction in Germany's manufacturing sector is increasing expectations of interest rate cuts from the ECB, while the positive data from the services sector in the US is being closely watched ahead of the Fed's interest rate decision. Important data from the Eurozone, such as Germany's ZEW Economic Sentiment, and Core Retail Sales from the US could also create volatility in the markets.

From a technical perspective, the GBP/USD pair is trading just above the 1.2665 support level. If downward movements continue, the 1.2610 and 1.2565 levels can be monitored as support. For potential upward movements, resistance levels at 1.2698, 1.2755, and 1.2777 should be tracked. The RSI indicator stands at 47, showing a neutral outlook. The pair has declined by 0.07% on a daily basis, which may indicate that negative pressure could continue in the short term.