GBPUSD

Despite starting from the 110 level, the Classical Dollar Index maintains a medium-term optimistic outlook. The 106.45 – 105.70 region, where the 21-week average is located, remains critical. As we reach midweek, the index attempts a bottoming pattern at 106.45. Staying above this level is crucial for EURUSD and GBPUSD rises. Key macro events include UK inflation data and US FOMC minutes.

GBPUSD faced pressure after reaching 1.2620 due to DXY recovery. A DXY reversal could bring downward pressure. Sustained moves below 1.2570 may target the 1.2460 – 1.2480 region. A breakout above 1.2620 is needed for further gains.