GBPUSD

The GBP/USD pair is in a recovery trend on the first trading day of the week following positive PMI data from the UK and Germany. While an overall optimistic outlook prevails in Europe, the fact that the UK's service sector PMI remains above the 50 threshold is particularly noteworthy. In the US, although service sector data fell short of expectations, growth momentum appears to be sustained. The inflation data in Germany coming in above expectations could dampen expectations for interest rate cut decisions by the European Central Bank. Today's Eurozone inflation and US ISM Services PMI data might be decisive for the direction of the pair.

From a technical perspective, the GBP/USD pair is gaining upward momentum from the support at 1.2485. However, the pair staying below the 233-period average and significant resistance levels of the 1.2610 - 1.2665 range indicates that the movement is of a corrective nature. If the recovery continues during the day, the resistance levels of 1.2565 and 1.261 may play a critical role. The RSI indicator suggests a neutral market outlook, with a 0.16% decrease compared to the previous day. If the support at 1.2485 is breached, it is possible for the selling pressure to increase and the trend to continue downward.